Europe's rush for rate cuts shifts global market power away from the US

A monetary rates policy divide is opening across the Atlantic

President of European Central Bank Christine Lagarde. Money markets are pricing in around 70 basis points of ECB rate cuts in total by year-end.

Europe has sent a new signal that borrowing costs will fall earlier and further than in the US, setting markets up for major shifts as investors play a monetary policy divide opening up across the Atlantic.

Investors see European stocks and debt leading global markets this year as rate cuts boost spending, softer inflation burnishes bonds and weaker currencies lift exports.