Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
Interest rates across the eurozone are likely to be cut today, as theEuropean Central Bankattempts to support the euro economy as it reels from the damage caused by Donald Trump’s trade wars.
The ECB is widely expected to cut its key interest rates by a quarter of one percentage point. That would lower its deposit facility rate to 2%, and would be the eighth cut in a year.
A cut looks nailed on, after inflation across the eurozone fell to 1.9% last month, below the ECB’s 2% target for the first time since last September.
Markets are pricing almost a 100% probability of a quarter-point cut, reportsRonaldTemple, chief market strategist atLazardAssetManagement, adding:
Today, investors will also be interested to hear theECB’slatest forecasts – economists expect cuts to its growth and inflation projections for next year.
TheECBmay also signal that it could pause its rate cutting cycle over the summer, before reassessing the situation in September.
ChristineLagardecan also expect questions about her claim last month that the euro could take on a more global role, as the dollar loses influence amid the current trade turmoil.
Lagarde’sfuture could also come up, following claims that she has discussed cutting short her term as European Central Bank president to become chair of the World Economic Forum.
7am: German factory orders for April
9am BST: UK new car sales report for May
9.30am BST: UK construction PMI report
1.15pm BST: European Central Bank interest rate decision
1.30pm BST: US trade data for April
1.30pm BST: US weekly jobless claims data
1.45pm BST: European Central Bank press conference
May was the busiest month for UK house sales since March 2022, new data from Rightmove this morning shows.
Across Great Britain, the number of sales agreed is now 6% ahead of the same period last year, Rightmove reports. But London is lagging, with sales just 1% higher than a year ago.
May is typically a busy month in the year for agreed sales, and last month’s was the busiest May since 2021.
Rightmove argues that May’s data suggests market conditions have improved, as home-movers carry on following the stamp duty increase at the start of April.
UK fintech Wise has joined the ranks of companies looking to migrate to the US stock markets.
Wise, which floated in London less than four years ago, told shareholders this morning that it plans to switch its primary listing to New York, the latest blow to the London market.
Wise’sCEO,KristoKäärmann, told the City:
Wisewas formerly known asTransferWise, which became the largest tech listing in the UK when it wasvalued at nearly £9bnafter its 2021 stock market debut.
Käärmannadds thatWiseplans to maintain a secondary listing on the London stock exchange, saying:
Several other UK-listed companies have recently shifted their listing to New York, including construction rental companyAshteadGroup, andgambling giantFlutter.
German factory orders have jumped unexpectedly, defying forecasts that they would fall as Donald Trump’s tariffs disrupted trade.
Orders at German manufacturers rose by 0.6% in April, official data this morning shows, beating forecasts of a 1% fall.
Statistics body Destatis also reported that foreign orders declined by 0.3%, despite a 0.5% rise in orders from within the eurozone. Domestic orders increased by 2.2%.
Demand for data processing equipment, electronic, and optical products increased, while there was also a rise in new orders for transport equipment, and for metal products.
Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.
Interest rates across the eurozone are likely to be cut today, as theEuropean Central Bankattempts to support the euro economy as it reels from the damage caused by Donald Trump’s trade wars.
The ECB is widely expected to cut its key interest rates by a quarter of one percentage point. That would lower its deposit facility rate to 2%, and would be the eighth cut in a year.
A cut looks nailed on, after inflation across the eurozone fell to 1.9% last month, below the ECB’s 2% target for the first time since last September.
Markets are pricing almost a 100% probability of a quarter-point cut, reportsRonaldTemple, chief market strategist atLazardAssetManagement, adding:
Today, investors will also be interested to hear theECB’slatest forecasts – economists expect cuts to its growth and inflation projections for next year.
TheECBmay also signal that it could pause its rate cutting cycle over the summer, before reassessing the situation in September.
ChristineLagardecan also expect questions about her claim last month that the euro could take on a more global role, as the dollar loses influence amid the current trade turmoil.
Lagarde’sfuture could also come up, following claims that she has discussed cutting short her term as European Central Bank president to become chair of the World Economic Forum.
7am: German factory orders for April
9am BST: UK new car sales report for May
9.30am BST: UK construction PMI report
1.15pm BST: European Central Bank interest rate decision
1.30pm BST: US trade data for April
1.30pm BST: US weekly jobless claims data
1.45pm BST: European Central Bank press conference