ECB Faces Pressure as Energy Prices Surge and Markets React

European markets opened in the red as energy prices surged, with natural gas hitting a three-year high. The FTSE 100, CAC 40, and DAX all dropped sharply. Oil prices also climbed, with WTI above $96 and Brent over $114.

The ECB is expected to keep interest rates unchanged, with President Christine Lagarde set to provide guidance on future policy. Inflation in the eurozone remains just below 2%, but rate cut expectations have fallen.

The Bank of England also plans to maintain its current rate, while the UK labor market shows mixed results with unemployment at a five-year high.

Asian markets declined overnight, with Japan’s Nikkei falling 3.4% and other major indices dropping as well.

The Fed held rates steady, with Chair Jerome Powell signaling uncertainty due to rising oil prices and tariffs.