The imminent rise in interest rates by the European Central Bank, as well as the Fed, combined with the risks that are evident on the development front, create a negative climate in the markets.
He is recovering slightlyat $1.0052 the euro early afternoon after the big “plunge” which brought it within a breath of 1 to 1 parity against the dollar.
The positive reaction of the euro resulted in the prices of eurozone bonds are also supportedwhich had earlier come under considerable pressure.
In any case, the upcoming one rise in interest rates by the European Central Bank, but also by the Fed, combined with the risks that appear on the growth front, form a negative climate in the markets. It is indicative that Nomura in today’s analysis “overturns” the expectations that have been cultivated for the course of interest rates, predicting that the Central Banks will be forced from next year to reduce their interest rates. After first increasing them to 1.75% by the ECB (until March 2023) and to 3.5%-3.75% by the Fed (until February 2023).
More specifically predicts six consecutive increases in ECB interest ratesto begin their reverse course from June 2023 with a first rate cut of 0.25%.
In HDAT, transactions of 182 million euros were recorded, of which 136 million euros related to purchase orders. The yield on the 10-year bond stood at 3.46% from 3.68%, yesterday, against 1.11% of the corresponding German title, with the result that the margin was formed at 2.35% from 2.45% that closed yesterday.
In the foreign exchange market, the euro recovered slightly against the dollar, as the European currency was trading at $1.0055 in the early afternoon from the level of $1.0039 at the market opening. The indicative price for the euro / dollar exchange rate announced by the ECB was 1.0042 dollars.
RES-EMP
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