jan 20  welcome to the home for realtime coverage of markets brought to you by reuters reporters you can share your thoughts with us at marketsresearchthomsonreuterscom rate hikes from the european central bank in 2022 seem to be in the cards according to money markets and they would probably be consistent with the 10year bund yield rising above 0 but unicredit analysts have a different opinion “to us this a 10 bps rate hike in september is highly unlikely” they say adding they see a much greater likelihood compared to the us “that the current bear market will converge into a nervous sideways range” rate hikes this year “would require a pronounced uturn by the ecb” “according to the current guidance it would imply an upward revision of the inflation projections for 2023 and 2024 an end to net asset purchases no later than the first two months of 3q22 immediately followed by the start of keyrate normalization” they argue money markets currently price in an 85 chance of 10 bps rate hike in september and an 89 chance of 20 bps rate hikes by december 2022 the table below from refinitiv shows money markets expectations on euro zone interest rates european shares are off to an uncertain start this morning as investors remain on the cautious side after us tech sold off yesterday amid continued worries over fed rate hikes the stoxx 600 was volatile in early dealings moving in and out positive territory but was last down over 01 on the day weighed down by weakness across healthcare and tech miners extended their rally after top metal consumer china cut a key rate sending the basic resources sxpp index to its highest in more than 13 years the overall picture for top country benchmarks was mixed as you can see in the snapshot prospects for war just do not bother markets the way they used to us president joe biden reckons russia intends to move in on ukraine and even sowed doubt over whether the west would retaliate against any minor incursion yet buyers have stepped in to lift mscis world stocks index after two days of falls that saw the mighty nasdaq enter correction territory essentially a 10 fall from recent peaks wall street for the time being at least appears set for a bounce with nasdaq futures up around 07 and yields on safe bonds from germany and the united states are moving up again after a latewednesday pullback reasons for the regular dipbuying are welldocumented  abundant cash negative inflationadjusted rates robust company earnings and chinas first mortgage reference rate cut in nearly two years shows that policytightening in the developed world may be offset at least by beijings actions read more  and despite this months hectic bond selloff a reminder that yields on a global debt benchmark the bloomberg barclays multiverse 710 years have only just risen above 2 finally all around are signs the world economy is emerging from the omicron knock back of late2021 and supply chain delays continue to ease japans exports and imports in december hit record highs in terms of their value in yen read more finally so tight are labour markets in parts of the world that australia even mulled letting 16year olds drive forklift trucks a proposal thats been put on ice some may say fortunately but the day may yet come key developments that should provide more direction to markets on thursday more geopolitics china said it warned away a us warship and north korea suggested it may resume nuclear and missile tests euro zone inflation will decrease gradually lagarde says read more europe on the up 0752 gmt never mind that a selloff on wall street deepened overnight confirming correction territory for the nasdaq but stock futures point to a second day of gains for european equity markets some goodlooking earnings could provide support and after gains across asian markets following another key rate cut in china derivatives on the dax ftse 100 and euro stoxx 50 indices were all rising between 03 and 05 on the watchlist are unilever shares which could stand up after the company effectively abandoned its plans to buy gsks consumer healthcare business saying that it would not raise its 50 billion pound offer that gsk previously rejected among those which reported trading updates bankinter deliveroo premier foods and entain were up in premarket trading europe inc is expected to deliver a 48 rise in q4 earnings