European Central Bank likely to cut interest rates, EU elections could impact key policies

From Euronews: 2024-06-03 01:01:28

European financial markets are gearing up for the European Central Bank’s rate decision and the EU Parliamentary elections, both of which will shape the region’s economic and political landscape. The ECB is anticipated to cut interest rates, while the EU elections are expected to impact key policies and potentially weaken the euro.

In Switzerland, the Consumer Price Index (CPI) for May is set to be unveiled, with inflation levels remaining below 2% since June 2023. The Swiss National Bank reduced the interest rate in March due to inflation falling below target. The upcoming CPI data will provide insights into Switzerland’s economic stability.

The US markets are eagerly awaiting the release of key jobs data, including the JOLTS Job Openings for March and the non-farm payroll for April. These data points will offer insights into the labour market and employment changes in the country, amid signs of potential slowdown in employment growth.

China’s trade balance data for May and Australia’s first-quarter GDP release will take centre stage in the Asia Pacific region. Positive Chinese economic data could benefit global markets, especially European luxury consumer stocks, while Australia’s GDP figures will provide a glimpse into the country’s economic growth trajectory.

Canada’s Bank of Canada (BOC) will decide on the interest rate this week, with expectations that the rate will remain unchanged at 5%. Despite cooling inflation levels, the BOC is likely to maintain the policy rate to support economic stability.



Read more at Euronews: Week ahead: ECB rate decision and EU elections take centre stage