The European Union announced this morning that it will increase its interest rates by 0.75%, as expected. The interest rate is now at 2%. The president of the ECB said they’re definitely not done hiking interest rates, and that we should expect many more to come.
That seems to be crushing traders’ hopes for a FED pivot early next month, as US stocks traded in the red on Thursday’s premarket.
This happened right before the US GDP estimate came in at 2.6%, which was higher than the expected 2.4%, suggesting that the FED hasn’t yet “broken something”, which would suggest they have some more room to hike interest rates.
Initial jobless claims this week came in at 217K, which is lower than the expected 220K, once again suggesting that the economy is doing better than expected, and that the FED should consider slowing down the pace of rate hikes.
Gold and silver traded lower on the news as well, falling respectively 0.5%, and 1%, as it is broadly expected that a deleveraging event in the economy will take everything down with it, at least over the short term.
Cameco Corporation announced Q3 earnings results, with EPS at $0.03, expected was 0.0024, and revenue of $389M, as opposed to the expected $330.35M. The stock traded +3.5% in premarket trading.
