Market Movers: ECB Rate Cut Expectations Shift, China Flexes Trade Muscle, EU Eyes US Tariffs

Citigroup Adjusts ECB Rate Cut Outlook Amid Stable Eurozone CPI
Citigroup has revised its forecast for European Central Bank (ECB) policy rate cuts, now anticipating reductions in September and December, a shift from its prior expectation of cuts in July and September. This adjustment comes as Eurozone Consumer Price Index (CPI) data for June remained stable, with the annual rate at 2.0% and the monthly rate at 0.3%, both in line with estimates and previous figures. The core CPI also held steady at 2.3% year-over-year. The consistent inflation figures may be contributing to the ECB's cautious approach, influencing analyst expectations for future monetary policy.

China Threatens Panama Ports Deal, EU Prepares US Service Tariffs
In a significant geopolitical development, China is reportedly threatening to block a Panama ports deal unless its shipping giant is included, according to the Wall Street Journal. This move underscores China's growing influence and assertive strategy in global trade and infrastructure. Concurrently, the European Union is reportedly planning to impose taxes or fees on US services, as well as potential export restrictions, in retaliation against US measures, the Financial Times reports. This signals a potential escalation in transatlantic trade tensions, with the EU preparing a list of possible tariffs.

US Assessment Downgrades Iran Strike Impact; UK Seeks Trump Trade Talks
A new US assessment indicates that recent strikes destroyed only one of three Iranian nuclear sites, with two other sites not as seriously damaged as initially thought, according to NBC News. This revised intelligence suggests a more limited impact on Iran's nuclear program than previously understood and could influence future geopolitical strategies. Meanwhile, Britain's trade chief is reportedly planning a trip to Washington to push forward trade talks with Donald Trump’s Cabinet, indicating a proactive approach to post-election trade relations.

Novo Nordisk Owner Invests in Quantum Computing; Ukraine Secures US Agreements
In corporate news, the owner of pharmaceutical giant Novo Nordisk (NOVO B) has acquired a Microsoft (MSFT) quantum computer in collaboration with Denmark. This investment highlights a growing trend of major companies venturing into advanced technological research and development, potentially signaling future innovations in healthcare and other sectors. Separately, Ukraine's President Zelenskiy announced future agreements with the US, stating they will strengthen Ukraine, underscoring continued international support amid ongoing geopolitical challenges.