Explore stories from Atlantic Canada.
SaltWire's Atlantic regional weather forecast for November 3, 2023 | SaltWire - Financial markets are ramping up expectations for interest rate cuts from the European Central Bank, betting it will be the first major central bank to ease policy to buffer a euro zone economy facing recession in contrast to a robust United States.
With investors confident that big central banks are likely done raising rates, focus has switched to when rate cuts will start. "The European economy clearly is weakening and weakening quite sharply," said BNY Mellon Investment Management's chief economist Shamik Dhar. They now expect two cuts in 2024. But facing more stubborn inflation, the BoE is expected to move slower than peers.In contrast to the euro zone, the U.S. economy continues to defy recession warnings, growing almost 5% in the third quarter.
ECB President Christine Lagarde acknowledged last week as the bank paused hikes for the first time since July 2022 that surging U.S. Treasury yields had spilled over, tightening euro area financing conditions.But having been wrong-footed time and again by hawkish central banks, some investors warn markets are getting ahead of themselves, risking a fresh bond sell-off.
The ECB emphasizes wage growth remains strong, while services inflation remains sticky. The Hamas-Israel war also poses a bigger risk to the euro zone, heavily dependent on energy imports, leaving it more vulnerable to higher oil prices.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
ECB interest rates are at good 'cruising altitude', ECB's Knot saysExplore stories from Atlantic Canada.
Read more »
Korea Day Traders Set to Cut US Stocks for First Time Since 2014Retail investors in South Korea are on course to reduce their holding in US equities for the first time in nearly a decade in a shift from their feverish interest in these stocks during the pandemic.
Read more »
ECB reviews interest on government deposits to curb losses -sourcesEuropean Central Bank policymakers are reviewing the interest the bank pays on government cash deposits, including a potential cut, to try and rein in...
Read more »
ECB considers cutting interest on government cash deposits to curb lossesEuropean Central Bank policymakers are reviewing the interest the bank pays on government cash deposits, including a potential cut, to try and rein in mounting losses resulting from its fight against inflation.
Read more »
ECB reviews interest on government deposits to curb losses -sourcesExplore stories from Atlantic Canada.
Read more »
N.L. has a plan to explore and develop the 34 critical minerals found in its geologyExplore stories from Atlantic Canada.
Read more »