European Economic News Preview: ECB To Hold Key Interest Rates As Tariff Deadline Looms

(RTTNews) - The European Central Bank is set to adopt a wait-and-see approach on Thursday ahead of looming tariff deadline.

Markets expect the ECB to hold the deposit facility rate at 2.00 percent after cutting it by a quarter basis points each in every rate-setting session since September.

The announcement is due at 8.15 am ET. Following the governing council meeting in Frankfurt, ECB Chief Christine Lagarde holds press conference at 8.45 am ET.

US President Donald Trump has set August 1 as deadline for EU to secure a trade deal. Trump has threatened to impose 30 percent tariff on European goods.

Flash Purchasing Managers' survey results from the euro area and the UK and consumer sentiment from Germany are the other top economic news due on Thursday.

At 2.00 am ET, the market research group GfK is scheduled to publish German consumer confidence survey data. The forward-looking consumer sentiment index is seen rising to -19.2 in August from -20.3 in July.

At 2.45 am ET, France's statistical office INSEE is slated to release monthly business sentiment survey results. The index is forecast to rise slightly to 97 in July from 96 in June.

At 3.00 am ET, unemployment and producer prices are due from Spain. Economists forecast the jobless rate to fall to 11.2 percent in the second quarter from 11.36 percent a quarter ago.

At 3.15 am ET, flash composite PMI survey data is due from France. The manufacturing index is expected to rise to 48.5 in July, while the services index to drop to 49.7.

At 3.30 am ET, Germany's flash PMI survey results are due. The factory PMI is forecast to rise to 49.4 in July and the services PMI to climb to 50.0.

At 4.00 am ET, S&P Global releases euro area composite PMI data. The composite output indicator is expected to rise to 50.9 in July from 50.6 a month ago.

Half an hour later, UK S&P Global composite PMI data is due. The services PMI is seen at 52.9 in July compared to 52.8 a month ago. The factory PMI is forecast to rise to 48.1 from 47.7.

At 6.00 am ET, the Confederation of British Industry publishes Industrial Trends survey results. The order book balance is expected to rise to -27 in July from -33 in June.