The latest London South East Webinar takes place on July 6. Come and hear CEO’s from Orosur Mining, Caledonia Mining, Glantus Holdings and Tekcapital speak. Please register here

Less Ads, More Data, More Tools Register for FREE

LIVE MARKETS-From Russia, with a rate hike

Fri, 11th Jun 2021 07:58

* European stock futures up 0.1%

June 11 - Welcome to the home for real-time coverage of
markets brought to you by Reuters reporters. You can share your
thoughts with us at markets.research@thomsonreuters.com

FROM RUSSIA, WITH A RATE HIKE (0658 GMT)

All eyes today on Russia, where the central bank is expected
to raise its 5% interest rate by as much as 50 basis points --
its third rate rise in a row.

The rouble faces risks from geo-politics and more
importantly, inflation is running above-target.

Russia, like many emerging markets, is seeking to get ahead
of the Federal Reserve, which has stressed it will look past any
temporary rise in inflation and keep stimulus in place. That
message helped markets take in their stride Thursday's blowout
U.S. CPI print of 5%.

Despite that number, U.S. Treasury yields are at three-month
lows and down 12 basis points this week -- set for their biggest
weekly drop in a year. Stock markets too are keeping their faith
in the Fed for now, with MSCI's world stock index up. European
and U.S. equity futures are higher too.

UK markets have reason to cheer as well -- Britain's
economic output in April was a record 27.6% larger than 12
months before, data showed.

Meanwhile, leaders of the Group of Seven wealthiest
economies meet in the English seaside resort of Carbis Bay. In
Joe Biden's first G7 meeting, the U.S. President faces lingering
doubts about America's reliability as a partner.

Leaders from the G7, NATO and the European Union are worried
about the pendulum of U.S. politics swinging yet again, and are
looking for concrete action, not words after the shock of the
Trump years.

Quite active on the corporate front too -- Didi Chuxing,
China's biggest ride-hailing firm made public the filing for its
long-anticipated U.S. stock market listing which is expected to
be this year's biggest initial public offering.

Key developments that should provide more direction to
markets on Friday:

- UK April industrial output up 27.5%

- US Uni of Michigan inflation expectations

- G7 summit in Cornwall

- German Bundesbank sees 2021 inflation at 2.6% vs 1.6%
before

(Dhara Ranasinghe)

*****

EVERYTHING AS EXPECTED? (0533 GMT)

European stock futures are slightly higher after yesterday's
ECB policy meeting ended in line with analysts' expectations,
and U.S. data supports the Fed's view that the current inflation
will be transitory.

The European central bank reaffirmed its pledge to buy bonds
at a "significantly higher" pace while raising its growth and
inflation projections.

U.S. CPI data were above consensus, but much of the price
surge came from commodities and airfares, seen as temporary.

The only thing that can now move the needle would be
mentioning the 'tapering' word at next week's Fomc, which is
seen as unlikely.

(Stefano Rebaudo)

*****

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.