The Iran war continues to impact the Eurozone, which Thursday reported higher inflation this month along with slower growth last quarter.

The data came just hours ahead of the latest decision from the European Central Bank rate, with economists expecting officials to hold key rates at current levels.

Annual headline inflation in the euro area climbed to 3.0% this month – the most since September 2023 – matching the estimate and outpacing the March rate of 2.6%. However, the core rate eased a tenth as expected to 2.2%. suggesting a lack of second-round effects.

(Continue Reading – LS)

The Bank of England Thursday echoed the Federal Reserve in leaving its key interest rate unchanged at 3.75%, and signaled that it may soon raise borrowing costs to contain a surge in inflation triggered by the conflict in the Middle East.

The war with Iran has pushed oil and natural-gas prices sharply higher, where they have stayed as the Strait of Hormuz has remained closed despite the suspension of military action.

(Continue Reading – WSJ)

FRANKFURT – Euro area central bankers are widely expected to leave key interest rates unchanged Thursday amid mounting evidence that the Iran war is driving consumer costs higher as it undercuts economic growth.

Traders and economists agreed that any policy action from the public lender will come at the next decision-making meeting of the European Central Bank in six weeks, with both calling for a 25 basis-point hike at that juncture.

Preliminary data for April Eurozone annual inflation and Q1 GDP are due just hours before the ECB is set to announce its decision, and neither data point is likely to garner applause at the bank’s headquarters in Frankfurt. An economists’ poll said headline annual price growth this month is expected to rise three-tenths to 2.9%, which would be the highest mark since the end of 2023 and nearly a point more than the central bank’s target of 2% over the medium term. Euro area economic growth is forecast at 0.2% q/q, with the first month of the war – March – part of the mix.

(Continue Reading – LS)

Apple Inc. reports quarterly earnings after the close on Thursday, but investors will be largely looking past the numbers and seeking clues to incoming Chief Executive Officer John Ternus’ strategic plans.

The iPhone maker announced last week that Ternus, its current head of hardware infrastructure, will take over for CEO Tim Cook on Sept. 1. That makes Apple’s fiscal second-quarter earnings report, outlook and conference call the first significant opportunity for Wall Street to get a reading on the new leader’s priorities. It isn’t clear if Ternus will appear on the call, and a company spokesperson declined to comment.

(Continue Reading – BBG)