Wages aren't rising at a rate that would trigger inflation alarms, European Central Bank Chief Economist Philip Lane said Thursday.
High euro zone energy costs have yet to generate second-round inflation effects, and the strength of such a pass-through is uncertain, European Central Bank chief economist Philip Lane told Italian news agency ANSA.
The European Union is facing an energy price crisis as a result of the Iran war fallout in oil and gas markets, the bloc's energy chief said on Friday in a letter seen by Reuters, which urged countries to consider measures to curb energy demand.
Resurgent oil and gas prices have reignited concerns over price pressures.
Long-dated eurozone government bond and Treasury yields edged higher, awaiting the ECB's expected rate hike and the Treasury's first buyback auction with increased volume.
European natural gas prices are surging, creating opportunities for Venture Global, Cheniere Energy, Shell, Equinor and U.S. gas producers.
While nearly all observers anticipate a rate hike today, there is dissent among bond markets about the terminal rate for this tightening cycle from the ECB. Much depends on events in the Middle East and their impact on energy prices and inflation.
The European Central Bank is widely expected to hike interest rates on Thursday, erring on the side of caution as the U.S.-Iran wardrags on, keeping oil prices high and raising inflation again.
European Central Bank board member Isabel Schnabel said interest rates must rise further as the conflict in the Middle East drags on and strong euro-zone economy pose upside risks to inflation, in an interview to Bloomberg News published on Wednesday.
European equities have long been written off as the ultimate value trap — a sleepy, slow-growth market living in the shadow of Wall Street's tech-fueled mega-rally. But a massive shift in market dynamics is unfolding across the Atlantic.
European stocks were little changed on Monday, holding close to record territory as investors weighed a strong earnings season against another rise in oil prices and an unsettled outlook for the Strait of Hormuz. The STOXX Europe 600 traded around 660.1 in early dealings after closing at a record 660.25 on Friday and gaining 1.7% last week.
The ECB hiked its key deposit rate by 25 basis points in June as energy prices spiked. Investors had written off a hike at next week's meeting, but higher oil prices have brought monetary policy back into question.