Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

European stocks hold firm, euro inches higher after ECB raises rates

Published 17/03/2023, 01:26 am
Updated 17/03/2023, 01:26 am
© Reuters

© Reuters

By Scott Kanowsky 

Investing.com -- European stocks held largely steady, while the euro inched up against the dollar and government bond yields in Germany fell after the European Central Bank raised its key interest rates by 50 basis points on Thursday.

At 09:35 ET (13:35 GMT), the regional Stoxx 600 dipped slightly by 0.12%, the DAX index in Germany grew by 0.23%, and France's CAC 40 gained 0.49%.

Meanwhile, the EUR/USD was slightly improved versus the greenback by 0.12% to 1.0589. Yields, which move inversely to prices, on benchmark 10-year German sovereign debt slipped.

The interest rate on the ECB's main refinancing operations will rise to 3.50%, while the deposit facility rate will rise to 3.0% and the marginal lending rate to 3.75%.

The bank vowed to press on in its fight to corral price growth and said it will continue to reduce its balance at the current rate of around €15 billion a month.

"Inflation is projected to remain too high for too long," the ECB said in a statement.

It pointed to its latest set of forecasts that show inflation still running just above the bank's medium-term target of 2% in 2025. At the same time, it raised its growth forecasts for the single currency bloc, and now sees GDP growth of 1% this year. It also revised up its forecasts for 2024 and 2025.

However, the bank dropped from its statement any reference to further interest rate hikes, a significant shift from its previous messaging. That comes in a week when global financial markets have been rattled by the collapse of three mid-sized U.S. banks, and by concerns for the viability of Swiss lender Credit Suisse , one of the world's 'systemically important' banks. Credit Suisse (SIX:CSGN) was handed a $54B lifeline and a vote of confidence by the Swiss National Bank (SIX:SNBN) overnight.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.