European Equities Slip as Traders Reassess Rate Cut Prospects

European equities weakened as rate-cut expectations faded, though the region’s benchmark index remained on track for its best weekly performance since September due to earlier upbeat earnings sentiment and easing inflation.

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European Equities Slip as Traders Reassess Rate Cut Prospects

European Equities Slip as Traders Reassess Rate Cut Prospects
European stock indices declined as investors dialed back expectations for near-term US interest rate cuts, triggering cautious sentiment across major exchanges. Market participants weighed the impact of recent Federal Reserve commentary and mixed global macro signals. Despite the pullback, the region’s headline benchmark remained positioned for its strongest weekly performance since September, supported by earlier optimism around earnings resilience and improving inflation trends. 
Traders continued monitoring bond yield movements and currency fluctuations as uncertainty persisted ahead of key US data releases that could further influence global risk appetite.