Strong earnings eclipse surging euro zone inflation for now



By Huw Jones


LONDON (Reuters) – Strong earnings from tech giant Google gave shares a shot in the arm on Wednesday, helping to counter jitters over the pace of interest rate hikes as record high piled more pressure on the European Central Bank.





The STOXX index of 600 European companies rose 0.6%, up for a third straight session, to recoup nearly half its losses during January’s global rout in shares.


Crude oil eyed seven-year highs and the dollar eased, while on Wall Street, S&P 500 futures were 0.8% firmer, and the tech-heavy Nasdaq futures jumped 1.7%.


Pleasing earnings from chipmaker Advanced Micro Devices also bolstered sentiment in the tech sector, with Facebook parent Meta reporting earnings later on Wednesday.


But record high of 5.1% in January was a surprise, defying expectations of a drop to 4.4%, sending German government bond yields to multi-year highs and the euro surging.


The ECB has insisted that price growth is temporary and benign, but markets will be looking for any change in tone when it meets on Thursday.


“The unexpectedly high rate is a slap in the face for the ECB. It will have to finally recognise the massively increased inflation risks and take its foot off the pedal of monetary policy,” said Joerg Kramer, chief economist at Commerzbank.


In Asia, a number of markets, including China, were closed for the Lunar New Year holidays.


Global equities in January had their worst month since March 2020, at the height of the initial wave of the COVID-19 pandemic, Deutsche Bank research showed, but the rebound so far has been patchy.

See also  Russian foreign minister Sergei Lavrov may visit India within a week


“We remain in ranges and not really going anywhere ahead of the central bank meetings,” said Michael Hewson, chief markets analyst at CMC Markets.


Markets are pricing in a string of rate hikes from the Federal Reserve and the Bank of England, Hewson said. The BoE meets on Thursday, and markets expect the central bank to increase UK rates.


Fed officials sought to play down the chance of a half-point rate rise in March. Though he said he saw three successive hikes starting in March, St. Louis Fed President James Bullard pushed back at the idea of an initial half-percentage point move.


Friday’s U.S. non-farm payroll figures will also be closely watched.


OIL EYES OPEC+


Oil prices were slightly down but still near last week’s seven-year highs as a draw in U.S. crude stocks confirmed strong demand and a lack of supply, but investors remained cautious ahead of an OPEC+ meeting later on Wednesday.


“The main concern for the market is that many members are unable to deliver on their quotas due to a lack of spare capacity as a result of years of underinvestment,” analysts at UniCredit bank said.


Brent crude was off 0.25% at $88.95 a barrel. U.S. West Texas Intermediate crude was down 0.1% at $88.10 ahead of the OPEC+ meeting.


The bond market sell-off that has upended financial markets since the start of the year stalled on Tuesday, with benchmark U.S. 10-year Treasury yields hovering near their lowest levels in a week. [GVD/EUR]


Benchmark U.S. 10-year Treasury yields edged lower to 1.7787, limiting losses in non-interest bearing bullion. Spot gold was up 0.18% at $1,804 per ounce.

See also  Goldman Sachs sees gold prices hitting $2,500/oz by year-end


Treasury yields, which move inversely to prices, rose by some measures at their fastest pace since 2009 in January as investors started to price in the possibility that the Fed could raise interest rates as many as five times this year.


As the dollar eased, risk-sensitive currencies such as the Australian dollar, the euro, and the British pound gained. The dollar index fell 0.4% as the euro jumped 0.45% to $1.1321.


The rouble strengthened to a near two-week high past 76 against the dollar after the Kremlin said Russia had plans in place to hedge against possible U.S. sanctions Washington threatens to impose should Russia invade neighbouring Ukraine.


 


(Reporting by Huw Jones, Editing by Timothy Heritage and Tomasz Janowski)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)





Source link

istanbul escort aksaray escort arnavutköy escort ataköy escort avcılar escort avcılar türbanlı escort avrupa yakası escort bağcılar escort bahçelievler escort bahçeşehir escort bakırköy escort başakşehir escort bayrampaşa escort beşiktaş escort beykent escort beylikdüzü escort beylikdüzü türbanlı escort beyoğlu escort büyükçekmece escort cevizlibağ escort çapa escort çatalca escort esenler escort esenyurt escort esenyurt türbanlı escort etiler escort eyüp escort fatih escort fındıkzade escort florya escort gaziosmanpaşa escort güneşli escort güngören escort halkalı escort ikitelli escort istanbul escort kağıthane escort kayaşehir escort küçükçekmece escort mecidiyeköy escort merter escort nişantaşı escort sarıyer escort sefaköy escort silivri escort sultangazi escort suriyeli escort şirinevler escort şişli escort taksim escort topkapı escort yenibosna escort zeytinburnu escort porno 1080p porno izle 4k porno izle 720p porno izle abella danger alman alman porno alman porno izle aloha tube porno amatör amatör porno amatör porno izle anal anal porno anal porno izle arap porno asa akira porno asyalı porno bangbros porno bangbros porno izle banyoda sikis başörtülü porno beeg porno izle beyaz tenli porno izle biseksuel porno izle bisexsuel porno brandi love porno brazzers brazzers porno izle canli porno canli porno izle çinli porno çinli porno izle ensest porno ensest porno izle ensest seks erotik porno erotik porno izle esmer porno esmer porno izle etek altı fake agent fake taxi fake taxi porno fantazi pornoları fantezi porno izle fetiş porno fetiş porno izle fetish fransız porno fransız porno izle full hd hg porno izle gangbang porno genç kız porno izle genç kız sikişi genç teen porno izle gizli çekim porno gizli çekim pornosu grup pornosu grup porno grup porno izle hd pornolar hd porno hd porno izle hemşire porno hemşire pornosu hizmetçi porno hizmetçi porno izle ingiliz porno japon pornoları japon porno kızlık bozma kızlık bozma porno izle konulu porno konulu porno izle koreli porno köylü pornoları kumral porno kumral porno izle latin pornoları latin porno latin porno izle lezbiyen pornoları lezbiyen porno lezbiyen porno izle lisa ann porno liseli pornoları liseli porno liseli porno izle manken porno manken porno izle masaj porno izle masturbasyon porno izle masturbasyon pornoları mature porno mia khalifa porno mia malkova porno milf porno izle mobil porno mobil porno izle öğrenci porno izle öğretmen porno izle okul porno izle olgun kadın pornosu olgun porno oral porno oral porno izle oral seks porna izle pornhub pornhub porno izle porno film izle porno indir porno izle porno resimler porno star porntube porno izle redtube redtube pornoları riley reid porno rokettube rus pornoları rus porno rus porno izle sakso blowjob porno izle sarışın pornoları sarışın porno sarışın porno izle sarışın pornoları sekreter porno shemale sikiş sikiş sikiş izle şişman porno siyahi pornoları suriyeli pornoları swinger porno tecavüz porno teen porn türbanlı pornoları türbanlı porno türk pornoları türk porno türk porno izle türkçe altyazılı porno türkçe altyazılı porno izle xhamster pornoları xhamster porno xhamster porno izle xnxx xnxx porno xnxx porno izle xvideos xvideos porno izle yaşlı porno yeşilçam porno izle youjizz youporn youporn porno izle zenci porno güvenilir bahis siteleri bahis siteleri casino deneme bonusu casino siteleri deneme bonusu para yatırma bonusu bahis siteleri casino siteleribahis sitesi para yatırma