The euro remains above the dollar parity ahead of the ECB

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London (AFP) – The euro held above parity with the dollar on Thursday, but eurozone stocks fell as the European Central Bank prepares to announce another sharp hike in interest rates in the face of inflation vertiginous.

The euro traded above a dollar on Wednesday for the first time since last month as the US currency also slid against the pound and yen on data showing cracks in the world’s biggest economy.

The dollar recovered some lost ground, however, ahead of the key ECB decision on Thursday.

“The European Central Bank will once again have to turn a blind eye to further signs of recession in the eurozone, China and elsewhere as it fights to bring inflation under control,” noted analyst Fawad Razaqzada. of the City Index market.

“A 75 basis point rate hike seems like a foregone conclusion, meaning the reaction of the euro and European stocks will depend on more than the rate decision itself.”

Markets will look for clues on the scale of future ECB rate hikes at bank chief Christine Lagarde’s press conference, analysts said.

After a painful year for markets hit by central bank interest rate hikes to tackle decades-long high inflation, investors have been buoyed by several weak U.S. indicators – the latest on the services and manufacturing sectors. real estate – suggesting the economy is slowing down.

This has led to speculation that officials may be ready to rein in increases, while some Fed policymakers have also raised the possibility of a slowdown.

Optimism was bolstered on Wednesday by news that the Bank of Canada had raised rates less than expected and signaled it was ready to slow down.

The Bank of Canada’s slowdown further fanned the winds of a similar Fed decision in December and comes after the (Australian central bank) slowed the pace of hikes to 25 basis points at its 2018 meeting. October,” National Australia Bank said. Taylor Nugent.

Credit Suisse shares slide

Traders continued to digest earnings updates from the world’s largest companies.

Shares of Credit Suisse fell nearly 11% after Switzerland’s second-largest bank announced a series of sweeping measures on Thursday aimed at unseating the embattled lender.

Credit Suisse revealed huge losses in the third quarter and said it would revamp its investment banking unit, cutting 9,000 jobs and raising new capital.

London’s benchmark FTSE 100 stock index climbed, boosted by strong share price gains in energy heavyweights BP and Shell following the latter’s third-quarter windfall earnings on high oil prices and gas.

Key figures around 11:00 GMT

Euro/dollar: DOWN to $1.0032 from $1.0087 on Wednesday

Pound/dollar: DOWN to $1.1562 from $1.1621

Dollar/yen: FALL to 146.32 yen against 146.39 yen

Euro/pound: DOWN to 86.74 pence vs. 86.77 pence

London – FTSE 100: UP 0.3% to 7,076.41 points

Frankfurt – DAX: 0.8% decline to 13,093.42

Paris – CAC 40: DOWN 0.8% to 6,229.06

EURO STOXX 50: DOWN 0.7% to 3,579.38

Tokyo – Nikkei 225: 0.3% decline to 27,345.24 (closing)

Hong Kong – Hang Seng Index: UP 0.7% to 15,427.94 (close)

Shanghai – Composite: 0.6% lower at 2,982.90 (close)

New York – Dow: FLAT at 31,839.11 (closing)

North Sea Brent Crude: UP 0.6% to $96.24 a barrel

West Texas Intermediate: UP 0.6% to $88.41 a barrel

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