In notes dated July 24, Goldman said it no longer expects the ECB to deliver a rate cut this year, while J.P. Morgan has pushed its rate-cut forecast to October from September previously. On Thursday, the ECB held policy rates unchanged at 2% after having cut interest rates eight times since June 2024.

European bonds dropped for a third day as traders continued to reduce their bets on a final European Central Bank interest-rate cut this year.

Benchmark deposit rate stands at 2%, its lowest since November 2022, while bank warns environment remains 'exceptionally' uncertain, especially due to trade disputes - Anadolu Ajansı

By Twesha Dikshit (Reuters) -European shares scaled a six-week high on Thursday, helped by upbeat results from the likes of Deutsche Bank and BNP Paribas, and optimism surrounding the EU-U.S. trade agreement,

FTSE 100 snaps six-day winning streak amid a global equity sell-off, while the pound slides, with the euro at its strongest since April. June retail sales rebounded thanks to warm whether, but not as much as economists had expected.

European bond yields rose as the European Union and the U.S. converge on a potential trade deal that would result in lower-than-feared tariffs on the bloc's exports. Germany's benchmark 10-year yield

Regional shares ended the Thursday session higher, as investors focused on U.S.-EU trade talks, the European Central Bank's widely anticipated interest rate hold and a flurry of corporate earnings.

The European Central Bank, based in Frankfurt, has telegraphed its intention to lower its key interest rate to 3.75 percent from 4 percent.

Risks to the euro zone inflation outlook remain balanced as the changes since June broadly offset each other, European Central Bank board member Piero Cipollone said in a newspaper interview.