The major European indices are closing mostly lower for the second consecutive day (Italy’s FTSE MIB is the exception). A snapshot of the provisional closes shows:
It’s a given that PEPP purchases will not be extended beyond March next year. However, the debate in the ECB now is centering on what happens next. As mentioned back in September here, a boost to APP purchases is on the cards and that is what policymakers are leaning towards at the moment.
But considering the inflation conundrum, policymakers do not want to give any misguided impressions. Not only that, the hawks are certainly fighting for their own agenda too.
Omicron aside, there are plenty of things to digest just from that to pique interest in markets. I’ve shared some thoughts for stocks yesterday here and why Pfizer’s news may not be a straightforward play.
As the week slowly winds down, we’re moving past that checkpoint highlighted above so the next few sessions may be a more lacking in a sense when trying to figure out any firm direction. That is unless we get more virus headlines.
Morgan Stanley project a rate hike from the Federal Open Market Committee in September and December 2022
Morgan Stanley and JPMorgan are looking for a lift off in September while Goldman Sachs are tipping June (also tipping June are Deutsche and BoAmerica analysts).
A US official tells Reuters that there will be discussion on possible military exercises that would prepare for a worst-case scenario to destroy Iran’s nuclear facilities should diplomacy fail. In order to prevent Iran from developing nuclear weapons.
Speculations such as this should provide a tailwind for oil, at the margin.
30 of the 36 economists asked say they now expect the Fed ‘lift-off’ rate hike to come earleir than they had previously projected.
Most thought there is a risk of even sooner than Q3.
The major indices closed higher for the third consecutive day.
