European Stocks Close the Day Down

The European stock markets experienced a slight retreat today, with only the UK FTSE 100 managing to steal a small gain. The Stoxx 600 declined by 0.2%, while the German DAX fell by 0.4%. The UK FTSE 100 bucked the trend with a modest gain of 0.1%. In contrast, the French CAC dropped by 0.8%, marking the largest decline among the major indices. Italy’s MIB decreased by 0.3%, and Spain’s IBEX also saw a slight decline of 0.2%. Adding to the market sentiment, the latest poll forecasts suggest that UK Conservative leader Rishi Sunak is heading for a loss in the upcoming July 4 UK general elections.

During a hearing in the Portuguese parliament, ECB policy maker Centeno said that the European Central Bank (ECB) will cut rates if the disinflation process continues and if inflation keeps helping in this regard. Reflecting on the monetary policy cycle, the current inflation trajectory, and interest rates, Centeno mentioned that the cycle of negative results for Banco de Portugal is expected to persist for at least another two years. He expressed optimism that a more regular situation will resume by 2026, aligning with expectations from all central banks.

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Comments from ECB Centeno in Portuguese Parliament

• European Central Bank Rate Cuts:

  • ECB will cut rates if the disinflation process continues.
  • Rates will fall if inflation continues to decrease.

• Monetary Policy Outlook:

  • Current monetary policy cycle and known inflation trajectory suggest continued negative results for Banco de Portugal.
  • Expected continuation of this trend for at least another two years.
  • A more regular situation anticipated to resume in 2026.

German Index Dax 30 Live Chart