Central Banks and International Diplomacy: A Pivotal Week

Euro zone government bond yields held steady on Wednesday as markets braced for crucial monetary policy updates from global central banks. Anticipation is high for the Federal Reserve meeting later today, widely expected to result in an interest rate reduction. The European Central Bank and Bank of Japan are projected to maintain current rates on Thursday.

Meanwhile, attention is also on U.S. President Donald Trump's Asia trip, especially his upcoming meeting with Chinese President Xi Jinping. In a speech in South Korea, Trump expressed optimism about achieving a beneficial agreement for both nations, signaling potential easing of trade tensions.

Adding to the busy financial week, major U.S. tech companies—Microsoft, Alphabet, and Meta—are poised to announce their earnings, potentially influencing market dynamics. European bond markets remain calm, with Germany's 10-year yield stable at 2.62%, highlighting a period of watchful waiting among investors.