The euro was up 0.24% against sterling at 0.8639 ahead of the ECB announcement, but was down 0.17% against the dollar at 0.9986. —Jenny Reed
European stocks are moving higher ahead of the ECB meeting
Most sectors were trading higher early Thursday as energy security continued to dominate the headlines and investors awaited a decision on rate hikes from the European Central Bank. Only retail trade shares saw a significant decline in early trading, with losses of 1.67%. Oil and gas businesses rose 0.14 percent after top losses on Wednesday. British biotech company Genus was the biggest gainer, rising 7.9% after posting higher profits in its full-year results. At the other end of the scale, French IT company and consultancy Atos fell 12.75%. —Jenny Reed
European Central Bank could unleash jumbo rate hike as economy slips into recession
The European Central Bank is expected to preempt a series of interest rate hikes and sacrifice growth in the region as the rising cost of living threatens to rise even further. ECB chief Isabel Schnabel’s speech in Jackson Hole set the tone for the upcoming policy meeting this week. With inflation in the euro zone expected to rise to at least 10% in the coming months and the risk of consumer prices soaring higher, a “jumbo” rate hike of 75 basis points on Thursday is certainly a possibility. “As advance hikes can have a bigger impact on inflation expectations than a more gradual approach, a 75bp move could make sense,” ECB watcher and Berenberg chief economist Holger Schmieding said in a research note. Read the full story here: European Central Bank could unleash jumbo rate hike as economy slips into recession — Holly Elliott
The US dollar has the legs to move even higher, says Wells Fargo strategist
The US dollar has room to climb even higher thanks to interest rate differentials on the back of a hawkish Federal Reserve, according to Wells Fargo Securities FX strategist Brendan McKenna. “We think many of these international banks will not be able to raise rates as aggressively as the markets are pricing in,” he told CNBC’s “Squawk Box Asia.” “So it’s a combination of a more hawkish Fed and a less aggressive tightening cycle from these international central banks supporting the dollar for the rest of this year,” he said. – Jihye Li
Goldman Sachs raises Fed rate hike forecast for this year
Goldman Sachs revised its forecast for next year on the Federal Reserve’s interest rate decisions. Analysts led by chief economist Jan Hatzius said in a note that the company expects a rise of 75 basis points in September, up from a previous forecast of 50 basis points, as well as a rise of 50 basis points in November, also revised up from a previous view of 25 basis points. It also expects a 25 basis point increase in December — citing recent hawkish commentary from officials. The note said Fed officials “seemed to imply that progress toward curbing inflation has not been as even or as rapid as they would like,” the note said. – Jihye Li
CNBC Pro: Wall Street pro predicts when the S&P 500 will rally — and reveals how to trade it
Market volatility is here to stay, according to market veteran Phil Blancato. But the chairman and CEO of Ladenburg Thalmann Asset Management sees a “strong rally” on the cards as market conditions improve. He predicts when the rally will happen and names his top picks to trade volatility. Professional subscribers can read more here. — Zavier Ong
All major averages close higher, Nasdaq snaps 7-day streak
Stocks rose on Wednesday as Wall Street shrugged off worries about aggressive rate hikes coming from the Federal Reserve. The Dow Jones industrial average gained 435.98 points, or 1.40%, to end the day at 31,581.28. The S&P 500 rose 1.83% to 3,979.90 and the Nasdaq Composite added 2.14% to 11,791.90, snapping a seven-day losing streak. —Carmen Reinick Wed Aug 17 2022 12:29 AM EDT
European markets: Here are the opening invitations
European shares are expected to open cautiously higher on Wednesday with Britain’s FTSE up 18 points at 7,560, Germany’s DAX up 33 points at 13,944, France’s CAC 40 up 18 points at 6,616 and Italy’s FTSE MIB up 42 points at 7,560. , according to, data from the IG. The data releases include preliminary euro area unemployment figures for the second quarter as well as second quarter gross domestic product. The latest UK inflation figures for July will be released as well as preliminary second quarter Dutch GDP. Profits come from Uniper, Carlsberg, Persimmon, Balfour Beatty, BAT and National Grid.
