ECB hosts emergency meeting to tackle market selloff


The European Central Bank’s Governing Council will hold an ad-hoc meeting on Wednesday “to discuss current market conditions,” according to a spokesman for the bank.

he announcement comes after the yield on Italy’s 10-year debt rose above 4pc for the first time since 2014 this week, signalling that investors aren’t convinced the ECB can raise borrowing costs and keep the bond yields of the region’s most vulnerable members in check at the same time.

Last week, the ECB announced that it intends to lift interest rates by a quarter-point in July, followed by a larger hike two months later as it fights against soaring prices. The institution hasn’t increased rates in more than a decade.

The euro rose as much as 0.6pc to 1.0475 per dollar following the announcement of the meeting.

“The fact that the euro is rebounding could suggest that investors are hoping to get more details on any potential intervention to stabilize the European government bond market,” said Valentin Marinov, strategist at Credit Agricole CIB in London. “Euro-dollar could climb back above 1.05 in the very near term.”

The unscheduled meeting was first reported by Italian daily Corriere della Sera.

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