European stock markets have recorded a fifth consecutive week of gains, reflecting cautious optimism amid mixed economic signals. Oil prices have risen by more than 2% over the week, supported by easing US-China trade tensions despite concerns about increased supply from Iran and OPEC+. The US-Iran nuclear deal developments continue to create uncertainty, contributing to fluctuating oil prices during the week. Meanwhile, gold experienced its second-worst weekly performance since June 2021, declining over 4% amid broader market dynamics. The European Central Bank (ECB) is expected to reduce interest rates to 1.75% by the end of 2025, with indications pointing toward a final consecutive rate cut in June as inflation trends downward. ECB policymakers remain divided, with Belgium’s central bank governor Pierre Wunsch, previously a hawk, advocating for further monetary easing to counteract risks to growth and inflation exacerbated by the impact of US tariffs introduced under former President Donald Trump. This tariff shock has heightened global trade tensions and poses challenges to eurozone economic expansion.