European doves defy the melting Fed cut expectations. Eyes on BoE! | MarketTalk: What’s up today? | Swissquote

Show notes

Stocks on this side of the Atlantic Ocean are better bid these days than their American peers thanks to a combination of too-lofty valuations in the US, good corporate earnings from European companies and the expectation of looser monetary policies in Europe and the UK sooner than in the US. Plus, the AI rally – that’s been boosting the major US indices - looks like it is losing momentum.
On the central bank front, the Riksbank opted for a 25bp cut yesterday, as expected, and said that there could be two more rate cuts this year, the European Central Bank (ECB) is expected to cut its rates when it meets in June, and the Bank of England (BoE) will – maybe – give more details on its plans to lower rates at today’s MPC decision.
What’s interesting is the European and Brits’ determination to ease their monetary policies regardless of what the Federal Reserve (Fed) will do despite the risk of seeing their currencies depreciate and re-boost the domestic price pressures.
The BoE is not expected to cut its policy rate today, but the MPC is expected to agree less on when to cut rates.
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