Inderes uses cookies to provide a better user experience and a personalised service. By consenting to the use of cookies, we can develop an even better service and will be able to provide content that is interesting to you.
Eurozone households hold nearly 10 BEUR in cash and deposits, but 80% of them do not own shares or other investment instruments. Households shy away from risk even more than expected.
Almost as much crude oil is already passing through the Strait of Hormuz as before the Iran war. However, the flows of refined products, such as diesel, remain a fraction of normal, which is reflected in fuel prices here and elsewhere.
The weaker-than-expected employment report for September took the wind out of interest rate expectations. There is plenty of volatility, but the big picture of the labor market did not change substantially, however.
Join Inderes community
Don't miss out - create an account and get all the possible benefits
Inderes account
Followings and notifications on followed companies
The AI hype and the resilience of the stock market despite rising interest rates have justifiably raised questions about a new bubble, especially in the US. You can really smell the bubble in the air if you take a good sniff.
The ECB's interest rate decisions are closely monitored, but central bankers' remarks between meetings can move the markets just as much. For longer-term interest rates, their overall impact is even greater.
Government bond yields continued to rise last week, and long-term interest rates in the US are now above 5%. At the same time, households' short-term inflation expectations accelerated significantly, and expensive fuels are maintaining price pressures.
The Fed delivered a rate hike, and in addition, economic and interest rate estimates were updated in a slightly more hawkish direction. The central bank was finally unanimous in its decision, meaning the dissenters disappeared from the meeting table.
The US Federal Reserve will announce its interest rate decision on Wednesday. An interest rate hike is already nearly certain, which would take the policy rate to the 3.75–4.00% range.
The ECB raised its key interest rates by 25 basis points, bringing the deposit rate to 2.5%. This hike gave the central bank a breather before its next moves. Positive glimmers were seen in the economic estimates.
The investment needs of hyperscalers have grown so large that they can no longer be covered solely by their own cash flow, leading the companies to increasingly turn to external financing, which is now also being sought from the Old Continent.
The European Central Bank (ECB) is expected to raise its policy rate at its meeting on Thursday, as the conflict between the United States and Iran keeps energy prices elevated and accelerates inflation once again.
Oil and gas prices have risen, and this was reflected not only in the euro area's preliminary inflation figure for August, but also in higher electricity price futures.