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The latest flare-up in fighting probably won't force the European Central Bank's hand on Thursday, even as energy costs creep higher.
Analysts at ING said a surprise hike at Thursday's meeting “should not be fully ruled out.”
The ECB hiked its key deposit rate by 25 basis points in June as energy prices spiked. Investors had written off a hike at next week's meeting, but higher oil prices have brought monetary policy back into question.
Lately, the land of the rising sun has been the land of the falling yen. While single-country equity exposure to Japan has provided investors with relative outperformance year-to-date (YTD), they appear to be better off shedding the currency drag.
The European Union plans to introduce a raft of policies and funding schemes to shift more of its economy to run on electricity, instead of oil and gas, a draft European Commission proposal seen by Reuters showed.
Threats of a resumed conflict and potential disruption in the Strait of Hormuz triggered a surge in global crude oil prices, with the benchmark Brent Crude Futures index surging above $79 a barrel, up from around $72 at the start of this week.
The DAX is singled out as the market most likely to see squeeze-driven gains in the weeks ahead Citi has warned that European stock markets face a growing risk of short squeezes, as investors caught betting against rising prices are forced to buy back their positions. The US bank said global equity positioning remained supportive of further gains, but that regional differences were becoming more pronounced.
The European Central Bank on Tuesday gave euro zone banks four months to draw up plans to counter AI-enabled cyber threats that could undermine confidence in the financial system and disrupt payments.