The European Central Bank (ECB) has lowered its key interest rates for the second time this year, reflecting concerns about slowing economic growth and easing inflation. The decision comes as the eurozone economy loses momentum, with households struggling to support the earlier rebound and manufacturers facing weak demand. The ECB’s move follows similar decisions by other major central banks as they navigate a global economic landscape characterized by slowing growth and rising inflation.
U.S. stocks traded slightly higher Thursday, led by the Nasdaq Composite, as jobless claims fell and consumer discretionary shares gained. European markets were mixed, with the Eurozone’s STOXX 600 falling slightly but Spain’s IBEX 35 Index rising. Asian markets closed mostly lower, with Japan’s Nikkei 225 falling and Hong Kong’s Hang Seng Index dipping.
Filippo Alloatti of Federated Hermes discusses the outlook for the European Central Bank’s monetary policy.
The Flash Composite PMI in the Euro Area increased to 51.40 points in April, a rise from the previous month’s 50.30 points. This represents an 11-month high for the indicator. However, the Flash Manufacturing PMI decreased to 45.60 points, indicating a 4-month low. On the other hand, the Flash Services PMI increased to 52.90 points, marking an 11-month high for this sector.
