• Business

    Norway announces 50 basis point hike to interest rates, largest for 20 years

    Norway’s central bank, also known as Norges Bank, in Oslo, Norway. Kristian Helgesen/Bloomberg | Bloomberg | Getty Images Norway’s central bank announced a 50-basis-point hike to its benchmark interest rate on Thursday, the country’s largest single increase since 2002. The move takes the policy rate from 0.75% to 1.25%, and Norges Bank Governor Ida Wolden Bache said in a statement that it will likely be raised to 1.5% in August. The bank’s Monetary Policy and Financial Stability Committee voted unanimously in favor of the rate rise, which was double the level broadly expected by economists. The committee said in a statement that a “markedly higher” policy rate is needed to…

  • Business

    European markets open to close, earnings, data, central banks

    LONDON — European stocks are expected to open in negative territory on Wednesday, giving up gains made in the previous session amid more positive global sentiment. The U.K.’s FTSE index is expected to open 45 points lower at 7,103, Germany’s DAX 112 points lower at 13,180, France’s CAC 40 down 56 points at 5,906, and Italy’s FTSE MIB 174 points lower at 21,763, according to data from IG. The lower open in Europe comes as global market sentiment shifts to a more negative setting. Overnight, shares in the Asia-Pacific region mostly traded lower as economic fears continue to weigh on the market. Oil futures declined more than 3% in Asia trade,…

  • Business

    Bank of America economist says his ‘worst fears around the Fed have been confirmed’

    The Federal Reserve waited too long to start fighting inflation and now runs the risk of dragging the economy into a recession, according to Bank of America’s top economist. On the heels of the central bank’s 75 basis point rate hike Wednesday, BofA global economist Ethan Harris said the Fed is being forced into such aggressive moves by inflation now running at its hottest pace since late 1981 . “Our worst fears around the Fed have been confirmed: they fell way behind the curve and are now playing a dangerous game of catch up,” Harris said in a client note Friday. “We look for GDP growth to slow to almost…

  • Business

    Stock futures rise slightly as investors brace for a big Fed rate hike

    Stock futures rose slightly in overnight trading Tuesday as investors anxiously awaited the Federal Reserve’s aggressive action to tame surging inflation. Futures on the Dow Jones Industrial Average gained 70 points. S&P 500 futures edged up 0.3% and Nasdaq 100 futures rose 0.4%. The S&P 500 suffered a five-day losing streak on Tuesday, dipping deeper into bear market territory. The equity benchmark has fallen more than 4% this week already and is now off over 22% from its all-time time hit in early January. The blue-chip Dow slid about 150 points Tuesday, also falling for a fifth straight day Tuesday. The Nasdaq Composite ended Tuesday slightly higher. The rate-setting Federal…

  • Business

    ‘Profit recession’ warning as markets wait for aggressive central bank moves

    A trader works on the floor of the New York Stock Exchange (NYSE) in New York, June 13, 2022. Brendan McDermid | Reuters Global stock markets diverged on Tuesday after a worldwide sell-off in the previous session, as analysts assessed the longevity of the bear market and risk of recession. U.S. stock futures bounced in early premarket trade on Tuesday after the S&P 500 slid back into bear market territory the day before.  Investors are awaiting a landmark monetary policy announcement from the Federal Reserve on Wednesday, with bets on a 75 basis point interest rate hike rising in light of a shock 8.6% annual inflation print for May. The…