FX.co ★ European Markets Seen Flat Ahead of ECB Rate Decision

European equity markets anticipated a subdued opening on Thursday, as investors awaited the European Central Bank's upcoming policy announcement, with a 25 basis point interest rate cut widely anticipated. This expectation was bolstered by recent data indicating that May's Eurozone inflation dropped to 1.9%, falling below projections and slightly under the ECB's target of 2%, thereby reinforcing the rationale for easing. On a global scale, investor sentiment remained delicate amidst ongoing trade tensions. U.S. President Donald Trump remarked on the difficulty of reaching an agreement with Chinese President Xi Jinping, despite earlier signals that a meeting between the two leaders could occur this week. In pre-market activity, futures for both the Euro Stoxx 50 and Stoxx 600 remained close to unchanged, highlighting caution prior to the ECB's decision and continued geopolitical unpredictability.