State Street SPDR EURO STOXX 50 ETF

FEZ

Market cap $4.5B

Market expectations that the European Central Bank will hike interest rates this year have already contributed to tighter financial and lending conditions. The "transmission of tighter policy is already underway," Goldman Sachs noted.

The European Central Bank's decision to keep rates ​unchanged last month was ‌a close call for some policymakers as signs of persistently high ​inflation made it hard ​to look past the energy-driven shock, ⁠the accounts of the ​meeting showed on Thursday.

Selling-price expectations eased across all business sectors, interrupting the steep upward trend seen in the last two months.

Share markets across Asia fell on Thursday after reports of fresh US military strikes on Iran and missile attacks linked to Kuwait unsettled investors and weakened optimism surrounding a possible peace agreement in the Middle East. Oil prices surged while Treasury yields climbed as investors reacted to escalating tensions and growing concerns over inflation ahead of key US economic data.

An EU plan to gradually reduce the number of free CO2 permits given ‌to industries has hit resistance from six governments that have demanded looser rules to help firms cope with the energy price impact of the Iran war, a document seen by Reuters showed.

European shares will struggle to post further gains for the rest of this year, a Reuters poll found, weighed down by the ​economic hit from the Iran war and a relative lack of popular AI-related stocks.

The European Central Bank "will do what is necessary" to keep inflation on target, one of its top policymakers told CNBC. Markets are overwhelmingly pricing in a rate hike from the central bank at its next meeting.

Germany is ready to compromise in negotiations on the European ​Union's capital markets union, including on ‌the sensitive question of financial supervision, Finance Minister Lars Klingbeil said on Thursday.

The persistence of energy price shocks will be a key factor guiding the European Central Bank's next policy decision, Dutch ​central bank chief Olaf Sleijpen said on Tuesday.

The euro zone is not facing systemic risk from the recent turbulence in private credit markets but a few pockets of the financial system are exposed and some ​tension may already be visible, the European Central Bank said in a report ‌on Tuesday.