Eurozone Markets and ECB Speculations Propel Global Stocks

Share markets experienced a four-day winning streak, buoyed by expectations of an ECB rate cut which pulled down short-term eurozone borrowing costs. Positive movements in U.S. tech stocks and commodity markets further supported the mood. ECB chief Christine Lagarde's upcoming message and inflation projections remain focal points.

Share markets enjoyed a fourth straight day of gains on Thursday as the prospect of another ECB rate cut pinned shorter-term euro zone borrowing costs near their lowest level since end-2022, and the euro to a 4-month nadir.

An overnight rally in supersized U.S. tech stocks and a rebound in commodity markets also improved sentiment. However, focus is rapidly gravitating towards ECB chief Christine Lagarde's forthcoming message from Frankfurt. The central bank's second quarter-point rate cut of the cycle is all but certain, though the pace of future moves remains uncertain. Lagarde's message will introduce new ECB staff forecasts.

BNP Paribas Chief European Economist Paul Hollingsworth suggested upcoming inflation projections might surpass the June numbers, though these were finalized before oil prices plunged this month. Hollingsworth anticipates a message of gradualism and doubts an October rate cut, despite no hard ruling out by Lagarde.

(With inputs from agencies.)