Europe markets and policymakers are weighing softer economic signals against lingering geopolitical risks. UK data showing cooling pay growth has reinforced expectations of Bank of England rate cuts, lifting the FTSE even as sterling slipped. Germany’s outlook remains fragile despite a modest growth upgrade, underscoring weak confidence across Europe. Meanwhile, Russia and Ukraine have entered another round of US-mediated talks in Geneva, with expectations subdued ahead of the invasion anniversary. UK pay growth cools UK pay growth cooled at the end of 2025, adding to expectations that the Bank of England will keep edging toward rate cuts. The Office for National Statistics said regular average weekly earnings rose 4.2% year-on-year in the three months to December, down from 4.4% in…
Europe bulletin: Markets weigh rate cuts, German economy stalls
