Last week’s risk-averse tone in market sentiment lingered throughout Europe yesterday. The Eurozone Following last week’s central bank meetings, markets are concerned that official interest rates will remain high for a lengthy period of time. In this context, hawkish words from Fed members yesterday brought little comfort to markets.
Today’s data schedule is quite quiet. The only noteworthy release is September US consumer confidence. The index is expected to dip somewhat. Meanwhile, comments from Fed and ECB officials will be closely watched.
The Chief Economist of the European Central Bank, Lane, will talk shortly. Interest rates may have peaked but are unlikely to be decreased anytime soon, as stated by ECB President Lagarde in her statement to the European Parliament yesterday. Lane will almost surely reaffirm Lagarde’s remarks.
Bowman, a Federal Reserve policymaker, will talk in the US, but remarks she made late last week have already shown that she is one of the country’s rate-setters who believes that rates may need to climb much further.