Central Banks Steal the Spotlight Amid Global Market Tensions

European and global markets focus shifts to central banks like the Bank of England and Swiss National Bank with upcoming rate decisions. Market dynamics are influenced by geopolitical tensions in the Middle East, President Trump’s tariff policies, and prospects of further rate adjustments by central banks.

After the much-anticipated Federal Reserve policy meeting, the focus now shifts to European central banks with imminent rate decisions. The Bank of England, Swiss National Bank, and Riksbank are all set to announce their monetary strategies, with the BoE expected to maintain its rate as it evaluates economic impacts from tariffs and local tax increases.

Investors are awaiting crucial UK wage data, predicting stable pay growth excluding bonuses. Meanwhile, the Riksbank's interest rate remains unchanged, while a rate cut is anticipated from the Swiss National Bank. President Trump has criticized the Fed's lack of aggressive cuts, asserting tariffs are influencing economic patterns.

Geopolitical tensions are also impacting market behavior. Israel intercepted a missile from Yemen, exacerbating Middle East instability and causing crude prices to rise despite potential increases in Russian oil supply. Additionally, Trump and Zelenskiy have pledged collaboration to resolve the Russia-Ukraine conflict, potentially easing some market anxieties.

(With inputs from agencies.)