STOCKS | ECB Seen Raising Deposit Rate to 2.5% as Fed Faces Pressure

European markets fell sharply after investors priced in a likely rate hike from the European Central Bank. According to Sina Finance, most analysts expect the ECB to raise its deposit rate by 0.25 percentage point to 2.5% after a two-day meeting starting Wednesday. UBS Wealth Management U.S. also lifted its forecast for Federal Reserve rate hikes this year from one to two, and said the first hike is expected in late September. According to Sina Finance, UBS executive director and U.S. senior economist Andrew Dubinsky said a more hawkish Fed stance does not necessarily mean a worse investment outlook. The report said the White House is increasing pressure on Fed Chair Jerome Powell. U.S. President Donald Trump posted on social media calling for lower rates and said high rates are unfair to the United States, while Vice President Vance said he hopes the Fed will help lower rates to ease housing pressure.