Market Sentiment Turns Negative Ahead of ECB Decision

As the European Central Bank (ECB) gears up for its highly anticipated monetary policy announcement, European markets are signaling a downturn. Investors are on edge, anticipating the ECB's decision to reduce interest rates for the third time in 2025, a move spurred by escalating concerns over the eurozone's economic stability amidst global trade tensions.

Early Market Movements Reflect Investor Anxiety

At 8:00 am CET, the DAX dropped by 0.27%, while the British FTSE 100 saw a 0.45% decline. The CAC 40 wasn't spared, recording a 0.17% decrease, and the Euro Stoxx 50 fell by 0.25%. Currency markets also felt the pressure, with the euro down 0.41% against the US dollar at $1.13517, and the pound trading 0.23% lower at $1.32111 by 7:59 am CET.