The European Central Bank cut interest rates by 25 basis points and stated that its monetary policy is becoming less restrictive, indicating a cautious shift towards future rate cuts amidst low inflation and slow economic growth in the Eurozone.

The European Central Bank has cut interest rates for the sixth time due to low inflation and weak economic growth. Future rate paths are uncertain as European leaders plan increased military spending.

Global bond markets experienced a sell-off prompted by U.S. President Donald Trump's trade policies and a significant political shift in Germany affecting investor outlooks.