TOPICS MENTIONED IN THIS MARKET BRIEFING:
- LEuropean Stock Exchangeswatch for ECB announcements
- Wall Street remains feverish ahead of Fed decisions
- Chart of the day – Bitcoin : a long term channel
European stock markets monitor ECB announcements
European Stock Exchanges are up at the start of the session on Wednesday, driven by banking stocks, after the announcement of an exceptional meeting of the Governing Council of the European Central Bank on the evolution of the bond markets.
Investors are also awaiting monetary policy announcements from the US Federal Reserve in the evening.
The Governing Council of the ECB will hold this Wednesday at 11 a.m. according to several sources, a surprise meeting to discuss recent releases in the government bond markets, highlighting the institution’s concern over rising costs. borrowing from some countries in the bloc, especially the most heavily indebted ones.
The announcement last week by the ECB of its intention to engage in several rate hikes this year in the face of inflation has amplified the yield differential between Italian and German bonds.
Investors are preparing in parallel with the announcements at 8:00 p.m. from the Fed, which could accelerate the rise in its rates.
Wall Street remains feverish ahead of Fed decisions
Wall Street ended in disarray on Tuesday, after a seesaw session, ahead of the long-awaited statement from the United States Federal Reserve (Fed) after its monetary policy meeting, investors awaiting clues on the tightness of its measures against inflation.
Analysts are expecting the US central bank to announce on Wednesday that it will raise its interest rate by 50 basis points. Some fear, however, that the Fed may decide on a 75 basis point hike, in the wake of the sharper than expected surge in consumer prices in the United States in May, according to data published on Friday.
Traders now estimate a greater than 90% chance that the US central bank will raise rates by 75 basis points, up from 3.9% a week earlier.
Producer prices in the United States remained high in May due to the increase in oil prices, although their one-year increase was in line with expectations.
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CHART OF THE DAY – Bitcoin: a long-term channel
On this graph in logarithmic view, it is clear that prices are moving in a long-term bullish channel. Thus, the rback on the lower limit of the channel Coupled to the old historical highs towards $20,000 could maybe rebound towards $24,000.
However, if the market fails to reduce, the decline is likely to continue in the coming weeks. In fact, youdon’t foray under less than $20,000 would confirm the double summit (chart figure) with a goal theory around $12,500.
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