The stock market was locked in a narrow range last week as the rally attempts were met with selling. The reaction to a slightly hotter-than-expected CPI report on Thursday was positive but did not last long as concerns grew over the implications of changing global interest rate policies.
It appeared that the ECB’s comments about last week’s rate hike caught the market by surprise. The ECB sent a message that its rate hikes were probably at an end based on weaker economic growth that argued against further hikes. The ECB said that “key ECB interest rates have reached levels that, maintained for a sufficiently long duration, will make a substantial contribution to the timely return of inflation to the target.”
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