Daily summary: Stock market retreats after ECB decision, oil prices remain high

• Today's session on European markets brought declines in stock indices. Markets plunged after the ECB confirmed the start of the interest rate hike cycle and the QE cuts on 1 July. The ECB's statement about the July 25bp hike rather negates the chances for a bigger move, however it signaled the possibility of a big rate hike in September if the inflation outlook continues to grow.

• Sentiment remains weak on US Wall Street as well, with investors reacting to today's higher reading of jobless claims, which came in at 229,000, against expectations of 206,000 and the previous level of 202,000. The most important event tomorrow will be the US inflation reading for May. 

• Shares of Poland's leading studio CD Projekt (CDR.PL) have fallen below the psychological barrier of 100 PLN per share today, plunging more than 6.5%. Although sentiment has been relatively pessimistic for a long time, today Bank of America (BofA; BAC.US) added fuel to the fire by lowering its price target for the company's shares to 55 PLN. The Bank does not see any factors in the near term that could positively impact the stock price. 

• UBS analysts upgraded their recommendation for Tesla (TSLA.US) to 'Buy', pointing to an almost 50% upside potential for a rebound in the face of surprisingly higher sales of cars made in China.

• State Street (STT.US) communicates that it does not intend to acquire Credit Suisse (CSGN.CH). 

• JPY and USD are the best performing major currencies, while AUD and CAD remain the most weakened;

• The Bank of Canada released its Financial System Review, which indicated possible problems with the real estate market. The bank signaled that for some Canadians who took out mortgages between 2021 and 2022, monthly payments could increase by nearly 45% between 2025 and 2026. Vulnerability to high land and property prices, interest rate hikes, and high household debt could increase the risk of a decline in GDP. The loonie weakened due to today's reaction to the BoC report and overall dollar strength. 

• Turkish Finance Minister Nureddin Nebati announced that new steps to combat inflation and depreciation of the Lira (TRY) will be presented later today. Turkey's currency reacted positively to the announcement. At the time of writing this post, the mentioned solutions have not yet been published.

• The quotations of crude oil remain at a high level. The price of a barrel of WTI is over 121.50 USD. On the gold market there is a lack of a definite direction recently, for an ounce we will pay 1844 USD.

• Thursday's session did not bring much volatility on the market of digital currencies. Ethereum's quotes are oscillating around the level of 1800 USD, while Bitcoin remains just above the barrier of 30 000 USD

The index of 50 largest European companies found itself under selling pressure today. EU50 tested the lower limit of the previously broken upward channel and then broke below the support at 3740-3750 points. Currently, the target for sellers is the lower limit of the wide 1:1 system at 3687.5 points. Source: xStation5