International•18 Jun ’23 16:05 Author: ANP
Investors’ attention will be focused next week on the statements that President Jerome Powell of the American central bank umbrella organization Federal Reserve will make before Congress. Last week, the Fed decided to pause raising interest rates in the fight against high inflation after ten hikes in a row. The central bank did hint at further increases later this year.
Investors’ attention will be focused next week on the statements that President Jerome Powell of the American central bank umbrella organization Federal Reserve will make before Congress. Last week, the Fed decided to pause raising interest rates in the fight against high inflation after ten hikes in a row. The central bank did hint at further increases later this year. (CHINE NOUVELLE/SIPA)
Powell will appear before House and Senate special committees on Wednesday and Thursday to comment on the Fed’s monetary policy. Investors will be watching closely for comments about future policies and the state of the economy. There may be another interest rate hike in July. Powell can also be questioned about the turmoil in the US banking sector earlier this year, following the collapse of several regional banks in the United States.
Also read | Powell guides Fed through linguistic quagmire
The European Central Bank (ECB) did announce another increase last week and ECB President Christine Lagarde said a further move in July is very likely. The Bank of England will also announce a new interest rate decision next week. The British central bank is expected to raise interest rates further on Thursday.
Calm
It’s pretty quiet on the business front. Insurer Aegon is holding a day for investors on Thursday. The German car group Volkswagen is organizing an investor day a day earlier. The American parcel delivery company FedEx will also publish quarterly figures, as will the international organizational consultancy Accenture.
Also read | ECB raises interest rate by 0.25 percentage point in the fight against inflation
The macroeconomic data agenda includes data on activity in European industry and services and information on consumer confidence in the eurozone. Figures are also reported on the American industry. De Nederlandsche Bank (DNB) will publish new economic forecasts for the Netherlands on Monday.
Wall Street
Incidentally, the European stock markets will have to do without any direction from Wall Street on Monday. The American stock markets are closed that day because of Juneteenth, the commemoration of the end of slavery in the US.
Also read | ‘People act as if nothing is possible at an interest rate of 4 or 5 percent’
The Amsterdam AEX index rose a fraction on Friday to 772.72 points. The main indicators in Frankfurt, London and Paris recorded pluses of up to 1.3 percent. In New York, negatives of up to 0.7 percent were seen on the price boards.
2023-06-18 14:05:00
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