European stock markets closed with a timid bounce after initially turning negative halfway through the trading session. This shift was in response to the higher-than-expected inflation data from the United States in March, which rose to 3.5%. Milan closed up 0.27%, with London and Frankfurt also posting gains while Paris remained just below parity. However, Wall Street indices were still sharply negative, with both the Dow Jones and Nasdaq losing over one percentage point. The rise in inflation, along with recent strong economic and labor data in the US, increased the likelihood that the first interest rate cut overseas may not happen until after the summer, rather than in June. According to Cme’s FedWatch monitoring, which surveys analysts and traders daily, the probability of a rate hike in the next Federal Reserve meeting has increased to 80%, up from 42% the day before. This also had repercussions in the currency market, with the euro losing over 1% against the dollar and dropping to 1.0743.
The European markets reacted to the news of rising inflation in the US by initially dipping into negative territory before making a slight recovery towards the end of the trading session. Milan, London, and Frankfurt all closed in positive territory, while Paris remained just below parity. In contrast, Wall Street indices experienced sharp losses, with the Dow Jones and Nasdaq both falling over one percentage point. The increase in inflation, coupled with strong economic and labor data in the US, has raised expectations that the first interest rate cut in the US may be delayed until after the summer, rather than in June. According to Cme’s FedWatch monitoring, there is an 80% probability of a rate hike in the next Federal Reserve meeting, up from 42% the previous day. This news also had an impact on the currency market, with the euro losing over 1% against the dollar, dropping to 1.0743.
The uncertainty surrounding the timing of the first interest rate cut in the US has had ripple effects across global markets, with European stock markets experiencing a hesitant bounce towards the end of the trading session. Despite initial declines, Milan, London, and Frankfurt all managed to close in positive territory, while Paris narrowly missed breaking even. In contrast, Wall Street indices remained firmly in negative territory, with both the Dow Jones and Nasdaq posting losses of over one percentage point. The rise in inflation in the US, combined with strong economic and labor data, has increased the likelihood of a delay in the first interest rate cut in the US until after the summer, rather than in June. According to Cme’s FedWatch monitoring, the probability of a rate hike in the next Federal Reserve meeting has risen to 80%, up from 42% the previous day. The euro also suffered losses against the dollar, dropping over 1% to 1.0743.
The impact of the rising inflation in the US on global markets has been significant, with European stock markets initially reacting with a downturn before recovering slightly towards the end of the trading session. Milan, London, and Frankfurt all managed to close in positive territory, while Paris remained below parity. However, Wall Street indices continued to suffer losses, with both the Dow Jones and Nasdaq losing over one percentage point. The increase in inflation, along with strong economic and labor data in the US, has led to expectations of a delay in the first interest rate cut in the US until after the summer, rather than in June. According to Cme’s FedWatch monitoring, there is an 80% probability of a rate hike in the next Federal Reserve meeting, up significantly from 42% the previous day. The euro also saw losses against the dollar, dropping over 1% to 1.0743.
The news of higher-than-expected inflation in the US has had a mixed impact on global markets, with European stock markets experiencing a hesitant bounce towards the end of the trading session. Despite initial declines, Milan, London, and Frankfurt closed in positive territory, while Paris narrowly missed breaking even. In contrast, Wall Street indices remained firmly negative, with the Dow Jones and Nasdaq both posting losses of over one percentage point. The rise in inflation in the US, along with strong economic and labor data, has raised expectations of a delayed first interest rate cut in the US until after the summer, rather than in June. According to Cme’s FedWatch monitoring, there is an 80% probability of a rate hike in the next Federal Reserve meeting, up from 42% the day before. The euro also suffered losses against the dollar, dropping over 1% to 1.0743.
The impact of the rising inflation in the US on global markets has been significant, with European stock markets initially reacting with a downturn before recovering slightly towards the end of the trading session. Milan, London, and Frankfurt all managed to close in positive territory, while Paris remained below parity. However, Wall Street indices continued to suffer losses, with both the Dow Jones and Nasdaq losing over one percentage point. The increase in inflation, along with strong economic and labor data, has led to expectations of a delay in the first interest rate cut in the US until after the summer, rather than in June. According to Cme’s FedWatch monitoring, there is an 80% probability of a rate hike in the next Federal Reserve meeting, up significantly from 42% the previous day. The euro also saw losses against the dollar, dropping over 1% to 1.0743.
