It’s a packed week ahead for markets with the European Central Bank holding a crunch meeting on whether or not to hike rates again as the economy falters, while the United States releases latest inflation numbers.
That conundrum has left traders betting on a roughly 40% chance of a hike and 60% chance of a pause when rates-setters meet on Thursday. A headline number far above the 0.5% month-on-month increase expected by economists could revive inflation fears, a sharp dropoff would likely spark worries that growth is slowing too quickly after Fed rate hikes.For now, those in the Goldilocks camp appear to be right. Whether that lasts is another question.An electronic board shows Shanghai and Shenzhen stock indexes, at the Lujiazui financial district in Shanghai, China Oct. 25, 2022.
Chinese President Xi Jinping will be spared hard questions at this weekend’s G-20 summit in India: He’s not attending, another worrying sign of distancing between China and the West.HANNAH MCKAY/Reuters Workers are seeing wage growth in real terms for the first time in two years, albeit at just 0.1%. Good news for anyone paying bills, bad news for anyone trying to anchor inflation.
Both will review their decisions monthly to consider deepening cuts or raising output, depending on market conditions.