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Borrowing costs soar in Europe and oil tops $105 a barrel as bank flags mounting price pressures in eurozone
The European Central Bank increased interest rates for the second time since the Iran war started, responding to signs inflation is set to stay well above 2%. The deposit rate was lifted by a quarter-point to 2.5%.
Resurgent oil and gas prices have reignited concerns over price pressures.
Long-dated eurozone government bond and Treasury yields edged higher, awaiting the ECB's expected rate hike and the Treasury's first buyback auction with increased volume.
European natural gas prices are surging, creating opportunities for Venture Global, Cheniere Energy, Shell, Equinor and U.S. gas producers.
The European Central Bank is set to raise borrowing costs for the second time since the start of the Iran war. The deposit rate will be lifted by a quarter-point to 2.5% on Thursday, according to all but one analyst in a Bloomberg poll.
The ECB is widely expected to raise its key interest rate on Thursday. Eurozone inflation hit 3.3% in August, with energy inflation spiking to 14.3%.
The European Central Bank looks set to raise interest rates on Thursday for the second time this year, seeking to head off an energy-driven surge in inflation triggered by the Iran war.