Market sentiment believes the interest rate-cut cycle of European central banks is coming to an end.

Traders are increasingly inclined to believe that the easing cycle of European central banks is basically over. The money markets show that the European Central Bank, the Swedish Central Bank, and the Norwegian Central Bank are expected to keep interest rates unchanged at tomorrow's meeting, and maintain interest rates stable by the end of 2026. Even the Bank of England, which is expected to cut interest rates on Thursday, the market is only fully anticipating another rate cut next year, despite softer than expected inflation data released on Wednesday, increasing the possibility of another rate cut. This is in stark contrast to market sentiment earlier this year. At that time, the market widely believed that central banks in Europe would significantly reduce interest rates before 2026. Similarly, the Swiss Central Bank, which had been the first to cut interest rates and had cut rates multiple times, has also paused rate cuts, with the current interest rate now at zero. "Many of these countries have already cut interest rates multiple times - policy rates are no longer tightening," said Mike Riddell, portfolio manager at Fidelity International. "The most notable change in interest rates over the past month is that some central banks that had previously cut interest rates are now expected to raise them, rather than continue cutting them."