Mixed European Markets React to Rate Hikes and Inflation Jitters

Markets are consolidating recent gains before a bevy of central bank meetings this week. The coming week is jammed with central bank action, led by China on Tuesday where prime loan rates are expected to be cut by 10 basis points. Federal Reserve Chair Jerome Powell appears before lawmakers on Wednesday and Thursday and may again try to convince markets that two more quarter-point rate hikes are really likely. In contrast, markets are baying for the Bank of England to hike when it meets on Thursday, the only question being by 25 or 50 basis points. Rate hikes are also expected in Norway and Switzerland this week, perhaps by 50 basis points, though that will likely pale in comparison to Turkey's central bank as some analysts see rates rising from the current 8% to as much as 25%.