European stock markets were set for a sharply higher open on Thursday in the middle of two major central bank policy decisions.
LONDON — European stock markets are heading for a higher open Thursday as investors digest a Federal Reserve rate hike and brace for the European Central Bank's latest decision.
Ahead of the Fed announcement, markets had fully priced in the quarter percentage point raise in the funds rate to a target range of 5.25%-5.5%, the highest level for the benchmark since early 2001.Jerome Powell said inflation has moderated somewhat since the middle of last year, but hitting the Fed's 2% target "has a long way to go."
"I would say it's certainly possible that we will raise funds again at the September meeting if the data warranted," said Powell. "And I would also say it's possible that we would choose to hold steady and we're going to be making careful assessments, as I said, meeting by meeting."from the ECB on Thursday, with the main interest rate rising from 3.5% to 3.75%, as focus again moves to signals for the next meeting in September.
Euro area countries are at varying stages in their fights to bring down inflation, and there have been warning signs from the economy, with business activity shrinking more than expected in July.
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