Stock markets focused on future rate hikes like the ECB’s latest

The European stock markets will be focused in the coming days on possible new increases in interest rates such as the one decided last Thursday by the European Central Bank (ECB) of 75 basis points, as well as on the data of industrial production in the eurozone and in the September ZEW surveys for Germany.

Following this decision by the ECB, in what has been the largest increase made by the entity to deal with inflation at record highs, now analysts fear that this institution may once again be so aggressive at its meeting next October. which will begin to have full impact on the markets.

As Sara Carbonell, the head of Customer Development and an analyst at CMC Markets, told Efe, what can most impact the market in a week full of fundamental data is everything related to inflation, bond yields and how the ECB rate hike.

Carbonell has pointed out that although this rise was already “discounted” by the market, it affects “positively” certain sectors such as banking, since the price of mortgage loans will become more expensive and for “all domestic economies, indebtedness It will be more expensive.”

In Europe, on Tuesday the 13th the ZEW economic sentiment indicators for Germany for September will be released, in a situation conditioned by the war in Ukraine, the energy crisis and the decisions of the European Commission, and the problems in the value chains , which is reflected in high inflation rates, according to analysts at Singular Bank.

A day later, on Wednesday, Eurostat will publish the evolution of industrial production in the eurozone for the month of July.

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In this sense, the persistent shortage of semiconductors and the increase in the prices of energy and other raw materials put downward pressure on manufacturing activity.

Despite this, the market consensus forecasts a slight rise of 0.2% per month in industrial production in the euro area.

According to Allianz (ETR: ALVG ) Gl “from a European perspective, the most important macro event of the week is the Bank of England’s monetary decision on Thursday.”

In the US, analysts’ attention will focus on Tuesday on price level developments in August to be published by the Bureau of Labor Market Statistics.

According to the consensus, the CPI could moderate its pace of growth to 8.1% annual in August.

On Thursday, the evolution of early retail sales in August will be known in the US, projecting the market consensus that they will increase by 0.2% per month, after the stagnation of the previous month.

That same day the industrial production data will be known which, as in the eurozone, is expected to moderate its monthly growth to 0.2%.

In the Asia-Pacific region, investors’ attention will focus on the Asian powerhouse’s release of August retail sales and industrial production.

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