(Reuters) – European shares fell on Thursday before the European Central Bank meeting that took place later that day. Investors are awaiting information on the central banks tightening plans.

By 0709 GMT, the pan-European index had fallen 0.5%. This will be the index’s third consecutive session of losses.

The money markets now expect 75 basis points in ECB hikes by October. This is a significant increase from previous expectations of 25 bps increases at every meeting. Strong first quarter economic growth in euro zone gave weight to the hawkish wagers.

Global markets fell before the decision. New COVID-19 restrictions in Shanghai added to worries about recession. Asian shares fell, U.S. Treasuries declined, and U.S. Stock Futures also dropped, while the safe-haven Dollar surged to new two-decade highs.[MKTS/GLOB]

The ECB will announce its decision at 1145 GMT. There will then be a press conference at 1230 GMT.

Europe suffered a broad base of losses, led by the miners. The energy sector, however, was the single gainer with 0.4%. Oil prices cheered China’s stronger-than-expected exports in May but soon gave up gains. [O/R]

British American Tobacco (NYSE 🙂 rose 0.8% following it stating that it is confident in meeting its financial goals, regardless of the time it takes for it to sell its Russian units.