Markets on Edge as ECB Rate Decision Looms

Traders across Europe were striving to steady stock markets on Thursday following a drastic tech-led downturn. Investors are keenly waiting to see if the European Central Bank (ECB) might indicate September as the next possible date for cutting interest rates.

Thursday's trading was already bustling; Japan's yen climbed to a six-week peak amidst speculation of continued intervention, and stock markets remained unstable due to semiconductor tariff concerns that led to Nasdaq's worst performance since December 2022 on Wednesday.

Bond markets held firm, and the euro stayed near a four-month high against a placid dollar. Attention was fixed on the ECB meeting, with economists predicting a potential rate cut in September. ECB policymakers' consensus and the U.S. Federal Reserve’s comments supporting a September cut have bolstered market dynamics, with equities and commodities like oil and gold responding accordingly.

(With inputs from agencies.)