EUROPEAN SHARES
European equities climbed on Thursday, paring some of yesterday’s losses, as market sentiment strengthens following the Federal Reserve’s rates decision and prior to the ECB announcement.
Jerome Powell provided investors with what they were waiting for, lifting borrowing rates by 25 basis point higher to the 5.00%-5.25% target range, the highest since 2007.
While the decision on rates didn’t surprise, investors were interested to see a shift in the wording from the Fed chairman after he hinted this could be the final hawkish move of the current tightening cycle.
This tone change is being welcomed by equity and commodity traders as it lifts some of the pressure brought by a higher US dollar and reduces the prospect of a more aggressive FOMC.
That said, investors still have a lot to digest with today’s decision on rates and press conference from the ECB, as well as tomorrow‘s US jobs report for April, which will certainly contribute to increased market volatility.
Pierre Veyret– Technical analyst, ActivTrades
European equities climbed on Thursday, paring some of yesterday’s losses, as market sentiment strengthens following the Federal Reserve’s rates decision and prior to the ECB announcement.
Jerome Powell provided investors with what they were waiting for, lifting borrowing rates by 25 basis point higher to the 5.00%-5.25% target range, the highest since 2007.
While the decision on rates didn’t surprise, investors were interested to see a shift in the wording from the Fed chairman after he hinted this could be the final hawkish move of the current tightening cycle.
This tone change is being welcomed by equity and commodity traders as it lifts some of the pressure brought by a higher US dollar and reduces the prospect of a more aggressive FOMC.
That said, investors still have a lot to digest with today’s decision on rates and press conference from the ECB, as well as tomorrow‘s US jobs report for April, which will certainly contribute to increased market volatility.
Pierre Veyret– Technical analyst, ActivTrades