Euro area will suffer higher rates and lower ECB liquidity into summer | MarketTalk: What’s up today? | Swissquote

Show notes

The faster than expected jump in US initial jobless claims threw some cold water on the heated hawkish Federal Reserve (Fed) pricing yesterday.
The S&P500 flirted with the 4300 mark, again, and the index is up by more than 20% since the last October dip, meaning that the S&P500 stocks stepped into the bull market regardless of the tightening Fed, rising yields, and the inverted yield curve.
The US dollar fell yesterday, as the jump in US initial jobless claims scaled the hawkish Fed expectations slightly back after two shock rate hikes from the Reserve Bank of Australia (RBA) and the Bank of Canada (BoC) had fueled them throughout the week and panicked the bulls who were hesitant to continue buying stocks at the current levels.
The softness of the US dollar, and the rally in the EURUSD to almost 1.0790 masked the sad growth figures revealed in the euro area yesterday. But the European Central Bank (ECB) will likely continue hiking rates and liquidity will drain by end June with TLTRO coming to maturity by the end of this month.
In Turkey, the Turkish lira was steady yesterday as Turkey continued burning its dollars to calm down the market’s nerves, but the USDTRY is pushing higher this morning again.
In China, soft inflation figures fueled rate cut expectations from the People’s Bank of China (PBoC).
Listen to find out more!