Signal of interest rate cuts from the ECB, warning of possible hikes from the BOJ, and pressure from the US and EU on China: What’s happening in global markets?

Central banks' monetary policy signals, trade restrictions, and investment banks' assessments have dominated global markets. Statements from Europe and Japan highlighted differing approaches to interest rates, while the U.S. and Europe took steps regarding Chinese steel imports, drawing attention on the trade front. Positive expectations for Chinese stocks continue to shape investor sentiment.

The European Central Bank (ECB) may lower its deposit rate from 2.5% to 2% by the end of summer, as indicated by the President of the French Central Bank, Francois Villeroy de Galhau. Meanwhile, Japan's central bank signaled potential interest rate hikes due to persistent food cost increases. In the U.S., new sanctions on Chinese tech firms have been imposed to curb military advancements. Morgan Stanley has raised its targets for Chinese stocks, while the Australian Central Bank remains cautious about rate cuts.