European Markets Await Central Bank Decisions Amid Trade Concerns

European equities drifted in muted trading as investors braced for pivotal central bank meetings this week. The Stoxx 600 hovered NEAR flatline with volumes thinning—a telltale sign of institutional caution ahead of monetary policy signals.

All eyes remain fixed on the Federal Reserve’s Wednesday announcement, where officials are expected to maintain rates while telegraphing their inflation battle timeline. Across the Atlantic, the Bank of England faces mounting pressure to deliver its first cut of the cycle as UK economic data deteriorates.

The absence of major macroeconomic releases has amplified the market’s hypersensitivity to policy whispers. Trading floors now parse every diplomatic communique and central banker aside for clues on whether 2024’s fragile risk appetite can sustain.