European Stocks Rise Over 0.6% as Dollar Hits 7-Week High After Fed Hike
Updated
Updated · Euronews · Sep 17
European Stocks Rise Over 0.6% as Dollar Hits 7-Week High After Fed Hike
3 articles · Updated · Euronews · Sep 17
Summary
Euro Stoxx 50 and Stoxx 600 both gained more than 0.6% early Thursday, with the FTSE 100 up over 1%, as investors absorbed the Fed’s first rate hike in more than three years.
The bigger market reaction hit currencies and bonds: the dollar reached a seven-week high, the euro fell 0.5% to about $1.146, and the two-year Treasury yield climbed to roughly 4.72%.
Wall Street had reacted more negatively overnight — the Dow fell 1.2% and the S&P 500 lost 0.4% — while Asian trading was mixed, suggesting Europe was taking the Fed move more calmly.
Traders now fully price another Fed hike by December and see about 50% odds of a move as soon as October, with Goldman Sachs shifting to a forecast for consecutive increases.
Attention now turns to the Bank of England later Thursday and the Bank of Japan on Friday, as higher US yields and war-driven energy costs keep pressure on global inflation.