The Latest Breaking News from Christine Lagarde

The rally in European stock markets took a breather as EU leaders struggled to secure a €5 billion funding package for Ukraine. Investor sentiment was further dampened by the ECB’s cautious outlook on the economy and inflation, triggering selloffs, particularly in the defence and automotive sectors.

A trade war could push up eurozone inflation by half a percentage point alone with detrimental effects on growth, ECB’s Lagarde warns. The ECB president said rising trade tensions and a weaker euro could complicate monetary policy.

March S&P 500 E-Mini futures (ESH25) are up +0.18%, and March Nasdaq 100 E-Mini futures (NQH25) are up +0.25% this morning, extending yesterday’s gains after the Federal Reserve indicated there remains scope to lower interest rates later this year, as any tariff-driven rise in inflation is expected to be temporary.

March S&P 500 E-Mini futures (ESH25) are down -0.73%, and March Nasdaq 100 E-Mini futures (NQH25) are down -0.93% this morning, tracking losses in European equities after ECB President Christine Lagarde stated that U.S. tariffs heightened uncertainty over the economic outlook.

March S&P 500 E-Mini futures (ESH25) are down -0.43%, and March Nasdaq 100 E-Mini futures (NQH25) are down -0.60% this morning, tracking losses in European equities after ECB President Christine Lagarde stated that U.S. tariffs heightened uncertainty over the economic outlook.

US president Donald Trump has kicked trading tensions up a notch by threatening tariffs on EU alcohol, even as ECB president Lagarde warns that an escalating trade war could have severe global consequences.

The impact of a potential trade war with the United States and massive increases in European defense spending and government borrowing are looming over Thursday’s policy meeting at the European Central Bank

Massive German spending pledges and uncertainty caused by US trade policy are fuelling expectations the European Central Bank could on Thursday signal that a pause in interest rate cuts is in sight, analysts said.

Despite US President Donald Trump's sabre-rattling, the European Central Bank is set to press on with interest rate cuts Thursday as officials increasingly voice confidence that the fight against inflation is on track.

Comments by Christine Lagarde seen as veiled warning to Donald Trump, who demanded Federal Reserve lower interest rates ‘immediately’

Eurozone rate-setters are set to cut borrowing costs again this week, confident their efforts to lower inflation will remain on track despite the threat from US President Donald Trump's protectionist agenda.