Market Anticipation Builds 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 edge, expecting the ECB to implement its third interest rate cut in 2025. This move comes against a backdrop of escalating global trade tensions and tariff disputes, casting a shadow over the eurozone's economic outlook.

Early Market Reactions

At 8:00 am CET, the DAX saw a slight decline of 0.27%, while the British FTSE 100 experienced a more significant drop of 0.45%. Not to be left out, the CAC 40 and the Euro Stoxx 50 also dipped 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.