European Markets on Edge Ahead of ECB Rate Decision

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

Market Performance at a Glance: At 8:00 am CET, the DAX witnessed a 0.27% dip, while the British FTSE 100 lost 0.45%. The CAC 40 and Euro Stoxx 50 also saw declines, dropping by 0.17% and 0.25%, respectively. Currency markets mirrored this cautious sentiment, with the euro and pound both losing ground against the US dollar.