Eu, bank of Canada and interest rates
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European bonds dropped for a third day as traders continued to reduce their bets on a final European Central Bank interest-rate cut this year.
In notes dated July 24, Goldman said it no longer expects the ECB to deliver a rate cut this year, while J.P. Morgan has pushed its rate-cut forecast to October from September previously. On Thursday, the ECB held policy rates unchanged at 2% after having cut interest rates eight times since June 2024.
Regional shares ended the Thursday session higher, as investors focused on U.S.-EU trade talks, the European Central Bank's widely anticipated interest rate hold and a flurry of corporate earnings.
FTSE 100 snaps six-day winning streak amid a global equity sell-off, while the pound slides, with the euro at its strongest since April. June retail sales rebounded thanks to warm whether, but not as much as economists had expected.
European shares retreated on Friday, giving back gains from the previous session, as investors assessed mixed corporate earnings while awaiting updates on EU-U.S. trade discussions ahead of U.S. President Donald Trump's tariff deadline next week.
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Benchmark deposit rate stands at 2%, its lowest since November 2022, while bank warns environment remains 'exceptionally' uncertain, especially due to trade disputes - Anadolu Ajansı
European bond yields and the euro rose, lifted by hopes for a EU-U.S. trade deal and the European Central Bank’s pause in its aggressive rate-cutting campaign. Germany's benchma
The European Central Bank, based in Frankfurt, has telegraphed its intention to lower its key interest rate to 3.75 percent from 4 percent.
Euro zone inflation may be lower this year and next than previously expected and will remain around the European Central Bank's 2% target in the longer term, the ECB's Survey of Professional Forecasters showed on Friday.