{"id":159384,"date":"2025-06-05T05:23:12","date_gmt":"2025-06-05T05:23:12","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/159384\/"},"modified":"2025-06-05T05:23:12","modified_gmt":"2025-06-05T05:23:12","slug":"markets-mixed-as-investors-turn-their-attention-to-ecb-rate-decision","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/159384\/","title":{"rendered":"Markets mixed as investors turn their attention to ECB rate decision"},"content":{"rendered":"

\n Published on 05\/06\/2025 – 6:52 GMT+2\u2022Updated
\n 6:54<\/p>\n

\"\"ADVERTISEMENT<\/p>\n

Markets are widely expecting the European Central Bank (ECB<\/a>) to cut interest rates again at its monetary policy meeting later today.<\/p>\n

“At its most recent meeting in April, the ECB reduced its key interest rates by 25 basis points, bringing the deposit facility rate to 2.25%. Markets are now pricing in another cut in June, though expectations for further easing beyond that remain uncertain. A potential pause in July is gaining traction, as the ECB evaluates incoming economic data and inflation dynamics,” market analysts at Capital.com said.<\/p>\n

Markets anticipating ECB rate cut<\/p>\n

The latest decision will come as inflation in the euro area cooled more than expected <\/a>in May, bolstering expectations that the ECB will announce another interest rate cut.<\/p>\n

Annual consumer price growth slowed to 1.9% in May, down from 2.2% in April, according to a flash estimate from Eurostat this week. The figure came in below economists’ forecast of 2%, and marks the first time inflation has dipped below the ECB’s 2% target since September 2024.<\/p>\n

The decline in headline inflation suggests that business uncertainty, partly driven by renewed global trade tensions and soft consumer demand, is weighing on pricing power across sectors.<\/p>\n

Core inflation, which strips out volatile food and energy prices, also showed signs of easing. It slowed to 2.4% in May, from 2.7% in April, falling below expectations of 2.5%. On a monthly basis, core prices rose by just 0.1%.<\/p>\n

Asian shares mixed as US futures edge lower<\/p>\n

Meanwhile, Asian shares were mixed on Thursday, as Wall Street\u2019s big recent rally lost some momentum following a pair of potentially discouraging reports on the American economy.<\/p>\n

US futures edged lower and oil prices declined.<\/p>\n

Japan’s benchmark Nikkei 225 shed 0.2% to 37,658.46, while Australia’s S&P\/ASX 200 declined nearly 0.1% to 8,535.10.<\/p>\n

In South Korea, the Kospi jumped 2.1% to 2,829.48 after the country’s new president and leading liberal politician Lee Jae-myung began his term, vowing to restart talks with North Korea and beef up a trilateral partnership with the US and Japan.<\/p>\n

Hong Kong’s Hang Seng gained 0.9% to 23,856.54, while the Shanghai Composite was little changed, inching down less than 0.1% to 3,374.30.<\/p>\n

On Wednesday, the S&P 500 finished the day virtually unchanged at 5,970.81 and remained 2.8% below its all-time high. The Dow Jones Industrial Average fell 0.2% to 42,427.74, and the tech-heavy Nasdaq composite added 0.3% to 19,460.49.<\/p>\n

The action was stronger in the bond market, where Treasury yields tumbled following weaker-than-expected economic updates.<\/p>\n

In other dealings early Thursday morning, benchmark US crude fell 8 cents to $62.77 a barrel. Brent crude, the international standard, edged up 1 cent to $64.87 a barrel.<\/p>\n

The US dollar rose to 142.87 Japanese yen from 142.78 yen. The euro cost $1.1413, little changed from $1.1418.<\/p>\n","protected":false},"excerpt":{"rendered":"Published on 05\/06\/2025 – 6:52 GMT+2\u2022Updated 6:54 ADVERTISEMENT Markets are widely expecting the European Central Bank (ECB) to…\n","protected":false},"author":2,"featured_media":159385,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3091],"tags":[51,15685,9021,2441,16,15],"class_list":{"0":"post-159384","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-markets","8":"tag-business","9":"tag-ecb","10":"tag-european-markets","11":"tag-markets","12":"tag-uk","13":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114629090970932108","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/159384","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=159384"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/159384\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/159385"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=159384"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=159384"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=159384"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}