European stocks look set to rise ahead of a widely-expected interest rate cut by the European Central Bank as markets reassessed bets of policy easing this year.
A Bloomberg index of global government bonds rose for a fifth straight session on Wednesday, its best performance since December, as traders ramped up rate-cut bets from the US to Australia.
The dollar retreated as policymakers in Canada reduced borrowing costs Wednesday, increasing the focus on the US rate path.
While the ECB is expected to cut rates when it meets Thursday, traders will be looking for guidance on the path forward, notably from President Christine Lagarde at the press briefing.
Asian stocks rallied for the first time in three days, with Indian equities extending gains after Prime Minister Narendra Modi won crucial backing from two key allies in his coalition. Futures for US equities edged higher following the S&P 500’s 25th record close this year while contracts for European equities also advanced.
