📉 Global Markets React to Anticipated ECB Rate Cut

The European Central Bank (ECB) is widely expected to cut its key deposit rate by 0.25 percentage points to 2% on June 5, marking the lowest level in over two years. This follows a series of aggressive rate hikes to combat inflation that peaked near 11% in late 2022. Preliminary May inflation data is expected to show inflation back at the ECB’s 2% target. Despite this, ECB leaders remain cautious, citing uncertainty and refraining from providing clear guidance on future rate paths.

🇺🇸 In the U.S., labor market data due on June 6 will be closely watched amid ongoing trade tensions under President Trump. Job growth is expected to slow, with 130,000 jobs projected for May, down from previous months. Economists attribute the slowdown to federal downsizing and hiring freezes linked to economic instability and the trade war. Jobless claims have risen, hinting at a softer labor market.

🇨🇳 Meanwhile, China is tightening its grip on private crypto holdings to promote its state-backed digital yuan, leading to panic selling and decreased investor optimism.

📊 The Crypto Fear & Greed Index has dropped to 39, indicating a shift towards fear among investors. This sentiment suggests that market participants are becoming more risk-averse, potentially leading to further price volatility.

Stay informed and monitor these developments closely as they unfold.

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