The latest investor updates on stocks that are trending on Thursday.
Millions of mortgage holders to see their monthly payments rise as interest rates are hiked yet again.
Italy is preparing a new package of measures worth at least 5 billion euros ($5.5 billion) to help businesses and families cope with costly energy bills and plans to unveil it next week, two government sources told Reuters on Thursday. The right-wing administration led by Prime Minister Giorgia Meloni earmarked over 21 billion euros in its 2023 budget to soften the impact of energy costs on the euro zone's third largest economy in the first quarter of this year. The Treasury plans to fund the decree through savings stemming from the previous 21 billion euro package so as not to weigh on the public deficit, one of the sources said.
The Euro has rallied again during the trading session on Wednesday as we wait for the FOMC meeting results.
The Euro has rallied significantly during the trading session on Tuesday to reach the 1.08 region, an area of significant resistance.
February government borrowing at highest level since records began.
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The Euro initially gapped to the upside, before falling rather significantly to pierce the 50-Day EMA. After that, buyers came back in and picked it back up.
Goldman Sachs lowered its 2023 economic growth forecast for the euro zone on Monday, citing ongoing stress in the global banking system and an increase in economic uncertainty. The investment bank said it sees a 0.3% hit to the euro zone's real gross domestic product (GDP), reducing the growth forecast to 0.7% for 2023. It added that it sees no economic growth in UK this year and no longer expects the Bank of England (BoE) to hike its policy rate in May, leaving its terminal rate forecast for BoE at 4.25%.
The property market continues to resist slowdown despite low growth and historically high mortgage rates.
Euro zone government bond yields dropped on Monday as risks of a banking crisis kept spooking investors after UBS sealed a deal to buy Credit Suisse and some of the world's largest central banks teamed up to reassure markets. UBS will pay 3 billion Swiss francs ($3.24 billion)for Credit Suisse, and the Swiss central bank (SNB) said it would supply substantial liquidity to the merged bank. The Federal Reserve joined forces with the Bank of Canada, Bank of England, Bank of Japan, European Central Bank and SNB in a coordinated action to enhance the provision of liquidity through their standing U.S. dollar swap line arrangements.
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Borrowers raised just 3.3 billion euros this week from syndicated debt sales, according to the Refinitiv data compiled for Reuters, which excludes pre-planned government bond auctions. That was the lowest weekly amount all year, Refinitiv's data showed, and a tiny fraction of the 59.5 billion euros raised last week. In contrast, $144 billion was raised in U.S. dollar-denominated deals this week, Refinitiv said, with the lion's share coming from an $89 billion debt sale by the U.S. Federal Home Loan Bank, a key lender to U.S. regional banks, to support member banks' liquidity needs.
The Euro has gone back and forth during the course of the trading week as we continue to see a lot of noisy behavior, as the situation remains very unclear.
The Euro initially shot higher during the trading session on Friday, but gave back early gains as exhaustion set in.