Reported 4 months ago
European stocks and government bond yields rallied on Monday in anticipation of an interest rate cut from the European Central Bank (ECB), with the pan-European STOXX index up 0.6% and U.S. stock futures also rising. The focus was on the ECB, expected to cut rates to 3.75% on Thursday, potentially being the first major central bank to do so this cycle. However, strong euro zone inflation data last week tempered expectations for aggressive rate cuts, with markets pricing in two 25-basis point cuts and less than a 50% chance of a third. Additionally, positive Chinese factory activity data and stable U.S. inflation figures contributed to the optimistic market sentiment.
Source: YAHOO