European Leading Indicators | Global monetary policy divergence

1 minute to read

Here we look at the European leading indicators in the world of economics.

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Key insights:

Global monetary policies diverge

As several global central banks hold rates steady this week, Sweden’s Riksbank has cut its policy rate to 2.0%, citing mounting growth concerns and lower-than-expected core inflation. Economists anticipate a further cut later this year. The Swiss National Bank is expected to follow with a cut to 0%. The ECB’s recent rate reduction further highlights growing monetary policy divergence, which may enhance the appeal of European real estate in a global context.

Eurozone financial stress remains relatively low for now

Despite heightened geopolitical uncertainty, the Eurozone’s new CISS indicator, a measure of financial stress, stands at 0.03173, below its long-term average (LTA), suggesting financial markets remain relatively resilient and Europe may serve as a safe haven amid rising global risks.

European office investment is gaining momentum 

The European office sector is seeing renewed interest in 2025, with €21bn in completed and pending transactions, according to MSCI RCA. Following significant repricing, valuations have stabilised across most markets, offering opportunities for investors. Record-high prime office rents in some key European markets combined with limited supply should further support the sector.

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