Market selloff continues as ECB inflation hits new high

Declining oil prices have hurt the FTSE today, while record eurozone inflation comes in the face of a potential 75bp rate hike from the ECB.

FTSE suffering as energy names come under pressure

“The FTSE 100 has led the losses in Europe, with a weakening pound doing little to help stifle the downdraft that sparked yet another one-month low for the index. Unfortunately, the prominence of commodity stocks within UK markets has proven its undoing, with energy names Tullow oil, Energean, and BP feeling the pinch as oil looks to be heading for the worst losing run in over two months. On the flip-side, uranium has enjoyed a welcome return to the spotlight, with the growing support behind a nuclear resurgence helping to elevate stocks over the past week.”

Eurozone inflation hits yet another record as ECB prepares potential 75bp hike

“Inflation pressures continue to dampen market sentiment, with eurozone inflation hitting a record high for the ninth consecutive month. Comments from ECB member Holzmann essentially guaranteed a minimum 50Bp rate hike next week, with 75Bps also being debated. Unfortunately, there looks to be little reason for optimism going forward, with the ECB, Fed, and BoE all faced with the prospect of ramping up interest rates in the midst of a recession and cost of living crisis. ”