Geopolitics Alpha

One interest rate, three inflation realities. Why Europe’s price shock is so uneven

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One interest rate, three inflation realities. Why Europe’s price shock is so uneven

Finland, Germany and Lithuania share the euro and the ECB’s 2.50% deposit rate, but with September inflation at 2.7%, 3.3% and 6.1% respectively, they show how one policy meets different price realities. #EuXl

Directly affected

  • No company is named in this report.

Indirectly affected

  • JPM JPMorgan Chase

    Bank profits move with lending and interest rates

  • BAC Bank of America

    Bank profits move with lending and interest rates

  • WFC Wells Fargo

    Bank profits move with lending and interest rates

  • C Citigroup

    Bank profits move with lending and interest rates

  • TLT iShares 20+ Year Treasury Bond

    Long-term bonds move when yields change

  • IEF iShares 7-10 Year Treasury Bond

    Treasury bonds move when yields change

  • GS Goldman Sachs

    Bank profits move with lending and interest rates

  • MS Morgan Stanley

    Bank profits move with lending and interest rates

  • XLF Financial Select Sector SPDR

    A fund of financial companies

  • KBE SPDR S&P Bank

    A fund of bank stocks

Price reaction, T-5 to T+3

TickerT-5T-3T-1T0T+1T+2T+3
JPM———————
BAC———————
WFC———————
C———————
TLT———————
IEF———————
GS———————
MS———————
XLF———————
KBE———————

One interest rate, three inflation realities. Why Europe’s price shock is so uneven Euronews.com

Source: euronews.com

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12 out of 100

“One interest rate, three inflation realities. Why Europe’s price shock is so uneven” scores 12 out of 100. The score uses 1 sources.