ECB meeting next week – Danske Bank expect a 75bp rate hike

  • “We now expect ECB to hike 75bp next week, which will be followed by 50bp in October and 25bp in December, but acknowledge the increased uncertainty on the two latter hike size expectations. This is +25bp for our previous rate hike expectations at both the September and the October meetings, respectively, and we now see the endpoint of the ECB deposit rate at 1.5%.”

    “We believe the euro area will face a recession and ECB will hike into that, however, we also acknowledge that even without the ECB tightening, the European economy was in a severe situation to begin with a worsening energy crisis.”
Lagarde ECB

Major US indices close low for the second consecutive day

  • Dow industrial average fell -184.35 points or 0.57% at 32099
  • S&P index fell -27.06 points or 10.67% at 4030.60
  • NASDAQ index fell -124.03 points or -1.02% at 12017.68
  • Russell 2000 fell -16.8 a points or -0.89% at 1882.941

The 3 major indices all closed below their 100 day MAs. The 100 day MAs for the major in theowdices come in at:

  • Dow 32488.94 vs close of 32099.
  • S&P 4068.38 vs close at 4030.60
  • Nasdaq 12109.73 vs 12017.68

Looking at the 11 sectors of the S&P, energy was the big gainer. Information technology was the worst performer.

The winners today were:

  • Energy, +1.54%
  • Utilities, +0.25%
  • Consumer staples, -0.15%

The losers today were:

  • Information technology, -1.28%
  • Real Estate, -0.88%
  • Communication services, -0.78%
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