European Market

The pair reacted higher after the Swiss National Bank (SNB) slashed rates for second straight time, whereas the Fed is reluctant to pivot

UK inflation for May dropped to the Bank of England's target of 2.0%, as reported by the Office for National Statistics, marking a decrease from 2.3% in April. This figure matched economists' forecasts, causing a slight rise in the sterling to $1.2732. Services inflation, a crucial indicator for the BOE, decreased to 5.7% from 5.9% in April, while core inflation, excluding certain volatile items, fell to 3.5% from 3.9%.

The European Union announced higher tariffs on Chinese electric vehicle imports due to significant unfair subsidies, posing a threat to European EV manufacturers.

The ECB slashed rates for the first time in nearly five years, but adopted a cautious stance around future moves, creating some pressure for the German index

Tomorrow the ECB is likely to deliver a 25-bps cut – the first major advanced economy central bank to begin its cutting cycle. The cut is expected, with markets having priced in the cut from 4% to 3.75% for a few weeks now. However, forward guidance will be key here, with market participants focusing on any clues provided regarding future policy direction.

The index pulls back from its recent record highs and tests key technical levels, amidst uncertainty around the central bank’s rate path and July’s general election

The central bank made another step towards lowering rates on Thursday, sending the stock market to new record highs, while today’s data showed the economy exited its recession

The BoE kept rates at 5.25% again, but one more member voted to cut and inflation forecasts were lowered, while Governor Bailey did not embrace nor rule out a June pivot

DAX short-term traders not aligned with longer term participants.

The index rallied last week as BoE appears to be moving closer to a cut, but inflation is still far from target and more time may be needed

Revenues grew and losses narrowed in 2023, according to 2023 report, but the British luxury car maker is behind key competitors in electrification and postponed its first BEV