Last week was another volatile one for global markets, and much of the spotlight fell on Europe. France entered a fresh wave of political and economic turmoil after Prime Minister François Bayrou was ousted in a confidence vote on 8 September.

There was no expansion for the UK economy in July seeing it flatlined at 0%. After positive signs in Q2 for the UK economy, expectations where that the second half of 2025 should start seeing signs of struggle.

All eyes today are purely on The European Central Bank's meeting in Frankfurt as they release their next interest rate decision. Up until June of this year, the ECB had halved its key rate to 2% - 2.15% but has crucially been unchanged since.

The political turmoil continues in France after Prime Minister Bayrou lost the vote of confidence. Now meaning that France needs to replace their Prime Minister, maybe they’re becoming used to it , as it will be their fifth change in the last two years.

Delayed UK retail sales that were supposed to be released two weeks back, came out this morning. Initially forecasted at a level of 0.2%, we did see an uplift to 0.6%.

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The Euro is holding firm at the beginning of this morning's session with focus on July's Retail Sales for the Bloc. With Euro-Zone inflation having rose slightly last month, but still notably close to the ECB's target of 2%, bets of further rate cuts have cooled, with ECB member Isabel Schnabel stating on Tuesday that interest rates are in a position that allow the central bank to focus their attention elsewhere.

The Pound has fallen further this morning in the aftermath of The UK's government bond yields rising to their highest levels since 1998, as concerns deepen around the capability of to keep the debt under control.