European stocks surge as ECB announces emergency meeting

  • 📰 BDliveSA
  • ⏱ Reading Time:
  • 46 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 22%
  • Publisher: 63%

대한민국 뉴스 뉴스

European Central Bank’s policy committee to discuss the recent sell-off in government bond markets as traders brace for hefty hike by the Fed

An employee passes share price information displayed on an electronic ticker board inside the London Stock Exchange Group’s offices in London, the UK. Picture: BLOOMBERG VIA GETTY IMAGES/LUKE MACGREGOREuropean markets rallied on Wednesday, led by banks, after news that the European Central Bank would hold an emergency meeting on the recent bond market sell-off ahead of what is expected to be the most aggressive rise in US interest rates since 1994.

“The best laid plans of the ECB and President Lagarde to normalise policy in an orderly fashion have just run into the reality of the bond market,” said Societe Generale strategist Kit Juckes. Treasury yields had hit decade highs overnight and the dollar a 20-year peak as futures implied it was near certain the Fed would hike by 75 basis points to a range of 1.50-1.75% later on Wednesday.

That could be some time away and the global investment bank is recommending investors reduce portfolio duration and increase exposure to real assets. Japan’s Nikkei lost 1.1%, though sentiment was helped by a survey showing an improvement in confidence among local manufacturers. Two-year yields stood at 3.37%, after touching the highest since 2007 at 3.456% overnight. Given many US borrowing rates are linked to yields, financial conditions have already tightened markedly there even before the Fed hikes.

 

귀하의 의견에 감사드립니다. 귀하의 의견은 검토 후 게시됩니다.
이 소식을 빠르게 읽을 수 있도록 요약했습니다. 뉴스에 관심이 있으시면 여기에서 전문을 읽으실 수 있습니다. 더 많은 것을 읽으십시오:

 /  🏆 12. in KR

대한민국 최근 뉴스, 대한민국 헤드 라인