# Marketmind: Hawk-eyed Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-12-16 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: European and global markets analysis: Central banks signal Meta Description: Get the latest on European and global markets as central banks prepare for interest rate hikes in 2023 amidst ongoing inflation challenges. Stay informed with URL: https://financedigest.com/marketmind-hawk-eyedhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-12-16t053359z1lynxmpeibf05yrtroptp4ecb-policy-1736814713977-compressed.jpg) A look at the day ahead in European and global markets from Ankur Banerjee Investors have hunkered down with their risk-off hat on, after a central bank bonanza this week (that’s seven central banks on Thursday and the Fed on Wednesday, for those counting) made it clear that interest rates will go up in 2023 for most countries as the battle against inflation rages on. European Central Bank President Christine Lagarde’s forceful hawkish rhetoric has played Grinch, with little sign yet of a Santa rally as we head towards Christmas and the New Year. Asian equities look [set to end](https://www.financedigest.com/oil-set-to-end-turbulent-2022-modestly-higher.html "Oil set to end turbulent 2022 modestly higher") the week in the red, snapping their six-week winning streak, while the U.S. [dollar straightened its crown as a safe-haven after a recent wobble](https://www.financedigest.com/european-shares-hit-nine-month-high-dollar-wobbles-after-powell-remarks.html "European shares hit nine month high, dollar wobbles after Powell remarks"). The market wanted a metaphorical hug that everything will be OK, but central banks have [pushed real rates higher,”](https://www.financedigest.com/powells-warning-on-higher-u-s-rates-pushes-dollar-to-3-mth-high.html "Powell’s warning on higher U.S. rates pushes dollar to 3-mth high") said Chris Weston, head of research at Pepperstone. And so, investors will parse every inch of economic [data coming through in the near term to gauge inflationary pressures and recessionary signals](https://www.financedigest.com/stocks-dollar-little-changed-as-inflation-data-sends-mixed-signals.html "Stocks, dollar little changed as inflation data sends mixed signals"), with flash PMI data from the Eurozone and the UK on deck for the day. [China was ramping up vaccinations](https://www.financedigest.com/first-foreign-covid-vaccines-head-to-china-from-germany.html "First foreign COVID vaccines head to China from Germany"), especially for the elderly, and building stocks of ventilators, essential drugs and test kits in rural areas as the country braces for a surge in COVID-19 cases, while many city dwellers were planning holidays for the first time since the pandemic began. The initial exuberant reaction to the dismantling of China’s zero-COVID policy has quickly given way to worries that the [world’s second biggest economy may be unprepared for the wave of infections to come](https://www.financedigest.com/whats-coming-next-in-the-clearing-and-settlement-world.html "What’s coming next in the clearing and settlement world?"). Nearly 200 Chinese companies, including Alibaba and Baidu, heaved a sigh of relief after the U.S. accounting [watchdog said it has full access to inspect and investigate firms](https://www.financedigest.com/uk-watchdog-warns-crypto-firms-to-prepare-for-advertising-rule-change.html "UK watchdog warns crypto firms to prepare for advertising rule change") in China, removing the risk that these companies could be booted off U.S. [stock exchanges](https://www.financedigest.com/london-stock-exchange-pours-cold-water-on-merging-listing-segments.html "London Stock Exchange pours cold water on merging listing segments"). Of course, the worry remains on what the audit is likely to reveal, and that has put a lid on [gains for these stocks](https://www.financedigest.com/stocks-dollar-gain-on-soft-landing-hopes.html "Stocks, dollar gain on soft landing hopes"). Meanwhile, Twitter suspended the accounts of several prominent journalists who recently wrote about its new owner [Elon Musk](https://www.financedigest.com/elon-musk-and-others-urge-ai-pause-citing-risks-to-society.html "Elon Musk and others urge AI pause, citing ‘risks to society’"), with the billionaire tweeting that rules banning the publishing of personal information applied to all, including journalists. Some time away from [Twitter is good for the soul,” Musk](https://www.financedigest.com/elon-musk-plans-to-cut-half-of-twitter-jobs-bloomberg-news.html "Elon Musk plans to cut half of Twitter jobs – Bloomberg News") tweeted. [Key developments that could influence markets](https://www.financedigest.com/automotive-mems-sensor-market-key-manufacturers-development-trends-and-competitive-analysis-2028.html "Automotive MEMS Sensor Market Key Manufacturers, Development Trends and Competitive Analysis 2028") on Friday: Economic events: Nov UK retail sales, Flash PMI data for UK, Eurozone, Sweden’s [unemployment rate](https://www.financedigest.com/spains-unemployment-rate-inches-up-to-12-87-in-q4-2022.html "Spain’s unemployment rate inches up to 12.87% in Q4 2022") for November (Reporting by Ankur Banerjee; Editing by Edmund Klamann) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---