Inflation targets cooled by EU hike; US markets rise
After the European Central Bank announced its first interest rate hike in 11 years, U.S. markets appeared to be headed for gains Thursday.
The central bank made the surprise move in response to the fact that inflation has become a “major challenge,” believing that forces pushing costs higher have “broaden and intensified.”
The US announces its latest reading of the consumer price index on Friday, which could provide further inflation data. Following months of relentless increases, inflation eased slightly in April to 8.3%, the highest level in nearly four decades.
European shares declined in early trading as France’s CAC 40 slipped 0.5% in midday trading while Germany’s DAX dropped 0.9%. Britain’s FTSE 100 fell 0.7%.
Wall Street is still concerned about whether the Fed's aggressive interest rate hikes will help temper the impact or harm the economy.
9 June 2022