Morning Bidding: Markets ‘Fed’

Future Outlook for European and Global Markets from Anshuman Daga

no pain no gain

This seems to be a message from the Fed that shows a sober forecast and sets the groundwork for policy rates to rise to higher levels at a faster pace than expected.read more

That sent Asian stocks to a two-year low, the dollar to a 20-year high and sovereign bond yields higher.

BlackRock, the world’s largest asset manager, expects the Federal Reserve to raise rates a few more times, and data will determine the “truth” of that and how long it will take to raise rates.

Rick Ryder, who heads BlackRock’s global allocation investment team, said that when economic growth slows, rising interest rates and tight liquidity conditions will cause the economy to “suck up” and demand will adjust in response to these tight financial conditions. It is stated that the problem is whether it will start to be

Meanwhile, the only hope for the rest of the sterling bull run may be a significant rate hike by the Bank of England, as the pound hit a 37-year low of $1.1225.

Economists polled by Reuters last week expect the central bank to announce a rate hike to 2.25% from 1.75% at 1200 GMT, but financial markets are pricing in a bigger move to 2.5%.read more

Indeed, inflation is just a ways away from a 40-year high, but the UK has to contend with liberal government spending, slowing growth and a tight labor market.

Elsewhere, the Norwegian central bank is also widely expected to raise interest rates by 50 basis points to 2.25% today, the highest level since 2011.read more

However, the Swiss National Bank is expected to join the 75 basis point rate hike club to stem almost 30 years of high inflation.read more

In Asia, the focus is on as the Bank of Japan sticks to ultra-loose monetary policy and dovish policy guidance, remaining an outlier in a wave of central banks raising interest rates to combat surging inflation. I was guessed.read more

Key developments that could affect the market on Thursday:

Central Banks Meeting: Swiss National Bank, Norwegian Central Bank, Bank of England

Economic data: U.S. weekly unemployment claims

Reported by Anshuman Daga

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