The Fed chose to keep its policy rate constant in this months meeting, but the ECB decided to hike their policy rate by 0.25 percentage points.
Even though the Fed did not joke they signaled that they could hike rates by a further 0.5% until the end of the year. This shadowed the effects of the pause and the markets were slightly lower as most expected june to be the end of the campaign against inflation. The job market is still healthy even though it has loosened a little since last year, and the Fed won't feel compelled to cut until the unemployment rate goes up a little. This might mean that we won't get a summer rally like last year.
The ECB on the other hand raised its policy rate by 0.25 to a twenty two year high, continuing to battle inflation. They also signaled more hikes are to come in the following months as wage growth and inflationary pressures are stubbornly high. The Stoxx600 fell by 0.37% today. This probably means that we won't see European stocks rally anytime soon.
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