Equity markets are experiencing low volatility today as traders look ahead to the Federal Reserve’s meeting on Wednesday, interest rate futures are factoring in a high probability of a 75-basis points hike.
The European Central Bank caught some by surprise as it lifted interest rates by 0.5% as the bank previously hinted about a 0.25% lift.
Stock markets are enjoying a rally as traders have shrugged off concerns there might be an energy shortage in Europe.
The jump in the US inflation rate triggered major volatility in the markets as traders now feel the Federal Reserve will be even more hawkish than previously expected.
Equity traders are treading lightly today in the wake of the painful losses racked up this week.
European equity markets are in the red as the European Central Bank issued its intention to hike rates by 0.25% next month.
The mood in the markets is a little downbeat as worries about a cost-of-living crisis are still doing the rounds.
Editorial by Stuart Cole, head macro economist at Equiti Capital
An absence of major news has led to a lacklustre trading session. The move in BP sums up the London session as shares in the oil titan hit a two-year high because the company confirmed that yearly profit hit $12.8 billion, its highest mark in eights years.
The dollar's performance varied at the beginning of the week against the major currencies in the markets after the release of US jobs data.
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