Treasuries are mostly underperforming Europe where rates have also climbed on the ECB’s hike and as President Lagarde stressed the Bank is not pausing. US equity futures continue to be in the negative with the US30, US500 US100 close to yesterday’s lows. Shares of PacWest Bancorp is trading lower by -$2.67, or -41.59%. The Bancorp is trading lower by -$2.67, or -41.59%. USDIndex Has risen to 101.37 Thanks to the data, 100.74, Yesterday, the FOMC was in a slump. EURUSD has held above the 1,10 mark, and the overall reaction to the market is pretty mixed.
ECB slows down the pace with a 25 bp increase. As expected, the decision reduces the main refinancing to 3.75% and the deposit to 3.25%. In the initial statement, it was stated that inflation is still too high and price pressures are still strong. It stressed though that “the past rate increases are being transmitted forcefully to euro area financing and monetary conditions”. The impact of previous rate increases is emphasized a little more. Further decisions will remain data dependent and “based on its assessment of the inflation outlook in light of the incoming economic and financial data, the dynamics of underlying inflation, and the strength of monetary policy transmission”. No clear hint was given…
