Tuesday's European session opens in the wake of the European Central Bank's landmark move: a 25 basis-point hike to a 2.25% deposit rate on
The European session opened with markets digesting the European Central Bank’s landmark 25-basis-point rate hike to 2.25%, its first increase since 2023. The move strengthened the euro, pushing EUR/USD near 1.1609 as traders positioned for widening policy divergence ahead of the Federal Reserve’s highly anticipated decision under Chair Kevin Warsh. Meanwhile, Brent crude slid toward $81.94 after the US–Iran peace agreement reduced geopolitical risk and reopened the Strait of Hormuz, easing inflation concerns across Europe. Equity sentiment remained constructive, with the CAC 40 holding near record highs around 8,447.8, while copper consolidated close to historic peaks at $6.53/lb amid persistent supply deficits and strong energy-transition demand. In digital assets, Ethereum and XRP extended their recovery as improving risk appetite supported broader market participation. Investors now await Wednesday’s FOMC decision, which could determine the next major move for currencies, commodities, equities, and cryptocurrencies worldwide.
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