European stock markets rose Thursday as the European Central Bank cut interest rates for the first time since 2019 -- but gains were muted as sticky inflation blurs the outlook for more reductions.
Wall Street stocks meanwhile were little changed, after hitting fresh records a day prior as leading chip-maker Nvidia's market capitalization topped $3 trillion.
"This meeting was not unexpected, but it has moved the dial for eurozone interest rate expectations," she said in a note."It also highlights how this next phase of monetary policy will not necessarily be a cutting cycle like we have seen in past history. There is unlikely to be a successive set of cuts," Brooks added.
ECB president Christine Lagarde then warned at a press conference that the path of future rate cuts was uncertain and that there would be"bumps on the road." "In that sense, the immediate tone is a 'hawkish cut.' This is not a central bank in a rush to ease policy," he added.The ECB began to hike rates to combat inflation in mid-2022, after the US Federal Reserve and the Bank of England, but it did not wait for its American and British peers to begin cutting them.
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