December 7, 2022

ModularPhonesForum

Complete News World

The chief economist thinks the market may get a surprise for the European interest rate - E24

The chief economist thinks the market may get a surprise for the European interest rate – E24

Big profit at Equinor, an expected 0.75 percentage point rate increase in the eurozone and a full package for China: this will happen next week.

Harald Magnus Andreassen, chief economist at Sparebank 1 Markets.
Posted:

The European Central Bank (ESB) ended the ten-year period with interest rates at zero or less, and now the interest rate will continue to rise.

On Thursday, European Central Bank President Christine Lagarde is likely to announce that the central bank will raise interest rates by 0.75 percentage points, according to experts.

When they start too low, it’s understandable that they want to advance quickly, says chief economist Harald Magnus Andresen at Sparebank 1 Markets.

The interest rate is now 0.75 per cent in the eurozone.

I think the market might be surprised

The European Central Bank will continue to raise interest rates, also after the expected rate jump on Thursday.

However, Lagarde may stop raising rates earlier than the market thinks today. The market is now waiting for the European Central Bank to raise the interest rate to 3 percent, according to Andreessen.

See also  Wall Street dips in pre-trade after inflation figures - E24
Christine Lagarde, President of the European Central Bank (ECB).

– In the eurozone, we haven’t seen a noticeable increase in wage growth, says Andreessen and compare it to the US where wages have gone up the most.

Central banks keep a close eye on wage growth in times of high inflation, as now. They want to avoid wage-driven inflation. One important reason is that if prices rise too much as a result of strong wage growth, inflation may remain high for a longer period. It may become difficult to reduce price inflation quickly.

Inflation in the Eurozone is at an all-time high. In September, the price increase was 10 percent compared to the same month last year in countries using the euro.

Made for Equinor’s Mega Profits

Other than that, a number of companies will provide numbers for the third quarter of the year. Heavyweights such as Equinor, Norsk Hydro and Vår Energi will be in the winning range.

From Equinor, analysts expect a result of more than NOK 250 billion. Equinor’s results have been at record levels this year as a result of higher gas prices and higher oil prices.

The Norwegian oil and gas giant has reported that it expects profits in the billions from financial contracts. The company expects to profit between $200 million and $500 million from financial trading of oil and gas, Equinor said earlier this month.

A summary of Norway’s largest company’s performance in the third quarter will be released on Friday morning.

Equinor CEO Anders Opedal.

For foreign companies, Google owner Alphabet must provide numbers. So should companies like Microsoft, Amazon, and Credit Suisse. The latter is also scheduled to present a crisis plan, after the share fell last year and the big bank was exposed to a number of scandals.

See also  The market is holding its breath in front of the new inflation figures: - It will be the important factor

Expect weak numbers from China

On Wednesday, China is set to present a raft of data, including gross domestic product, after postponing the presentation of key numbers during the Chinese Congress.

– There is no reason to believe the numbers are surprisingly strong because they did not want to publish them during the conference, says Andreessen.

According to Bloomberg, the September figures are expected to emphasize weak consumption, slowing trade growth and the important role public investment plays in supporting activity.

In Britain, the Conservative Party is set to elect a new prime minister after Liz Truss announced her resignation.

Member of Parliament Rishi Sunak, a former Goldman Sachs banker, has been chosen as the preferred candidate, according to the report. financial times.

British media reported on Sunday evening that Boris Johnson, Truss’ predecessor, withdrew from the presidential race for the position of the new prime minister.