The European Central Bank cut interest rates to 3% and signalled it was prepared to ease policy further, as sluggish growth across the euro area kept pressure on policymakers.
Analysts cautioned that the outlook remains clouded by uncertainty over the path of interest rates, with policymakers signalling they are prepared to move in either direction depending on incoming data.
Investors have grown increasingly sensitive to shifts in tone from central banks, and trading volumes spiked in the hours following the announcement as funds repositioned their portfolios.
What it means for markets
The development is the latest in a series of moves that have reshaped expectations for the months ahead, prompting economists to revise their forecasts and reassess the balance of risks.
Market participants will be watching closely for further guidance, with several major data releases scheduled in the coming weeks that could prove decisive for sentiment.
