Jun 3, 2025, 08:46 GMT+2 A look at the day for European and global markets by Rae Wee The highlight of the European day will be the flash data on euro zone inflation for May, which is expected to precede a new rate cut by the European Central Bank (ECB) on Thursday. Consumer prices are expected to have fallen to 2.0% year-on-year last month, after April's 2.2% increase, which was above expectations. With it being almost a given that Frankfurt will cut rates by a quarter percentage point to 2.0% (0#EURIRPR) the day after tomorrow, traders then expect a pause, as the economy is holding up better than expected and long-term inflation concerns are resurfacing. Uncertainty over US trade policy, further aggravated by the ambiguity of court rulings on the legality of tariffs, makes the context difficult, with the ECB assessing the impact on economic activity and the implications for future inflation.
Thomson ReutersEuro zone inflation and ECB interest rates
Among other news on tariffs, the Trump administration is asking countries to submit their best offer for trade negotiations by tomorrow, as officials seek to speed up talks with several partners before the self-imposed deadline in just five weeks. Donald Trump's erratic trade policies continue to cast a negative shadow over the markets, and the dollar fell again to a six-week low today, depressed by signs of weakness in the US economy. Talks between Trump and Chinese leader Xi Jinping are scheduled for this week, as trade tensions between the world's two largest economies grow ever more intense. It remains to be seen whether it will be a "splendid" conversation or if things will take a turn for the worse. Possible drivers: - Euro zone CPI May - JOLTS job openings data April - Fed speeches by Goolsbee and Logan
Thomson ReutersEuro zone inflation and ECB interest rates
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