European Markets on Edge Ahead of ECB Decision

As the European Central Bank (ECB) gears up for its highly anticipated monetary policy announcement, European markets are signaling a cautious start. Investors are on high alert, expecting the ECB to cut interest rates for the third time in 2025. This move comes against a backdrop of escalating global trade tensions and tariff disputes, which have cast a shadow over the eurozone's economic outlook.

Market Reactions Early Thursday

At 8:00 am CET, the DAX witnessed a slight dip of 0.27%, while the British FTSE 100 wasn't far behind, losing 0.45%. The French CAC 40 and the Euro Stoxx 50 also felt the pressure, decreasing by 0.17% and 0.25%, respectively. Currency markets weren't spared either, with the euro and the pound both losing ground against the US dollar, trading at $1.13517 and $1.32111, respectively, by 7:59 am CET.