© Reuters Photo File: One hundred US dollar bills are seen in this photo taken in Seoul on February 7, 2011. REUTERS/Lee Jae-won/File Photo
Check out the next day from Anshuman Daga in European and international markets
Disagreement is seen over interest rate hikes.
Two ECB policymakers gave different views on the rate of future rate hikes, pointing to some disagreement over whether last week’s unprecedented 75 basis point increase should be repeated.
Investors’ anger over fears of a slowdown in growth is palpable.
Germany’s bond yield curve briefly inverted on Thursday, with German bond yields rising to an 11-year high of 1.539 percent.
But with currencies up 15% this year, there seems little stopping the dollar. Fed funds futures now indicate a 25% chance of a 100 basis point hike at next week’s meeting.
That has already seen the euro and yen near two-decade lows and the weakest in 40 years, lending support to dollar bulls.
One night the World Bank came out with sad news.
He warned that the world could be headed for a global recession as central banks around the world raise prices at the same time to deal with persistent inflation.
While the Fed meeting will be the biggest event for financial markets next week, regional focus will be on expected hikes by the Bank of England and the Bank of Japan.
On Friday, Asian shares weakened on lower economic assessments, as factory output grew more than expected and retail prices rose at the fastest pace in six months, showing surprising resilience in China’s economy.
Investors seem more concerned about the slump in assets in the world’s second-largest economy.
Meanwhile, the countdown has begun for what could be one of the world’s biggest IPOs. Volkswagen’s (ETR: ) supervisory board will meet Sunday to go ahead with an IPO of the Porsche brand, sources said.
Dollar rises https://fingfx.thomsonreuters.com/gfx/mkt/dwpkrxywavm/Two.PNG
Key developments likely to impact the market on Friday:
Economic data: Eurozone August final CPI
Speakers at events: ECB President Christine Lagarde and Bank of France Governor Francois Villeroy de Galhau; ECB Chief Economist Philip Lane
Index of the University of Michigan