European markets turned lower and trimmed weekly gains after a week of tumultuous trading. The euro held firm, and the spread between the French and German bonds stayed elevated for the second consecutive week. Eurozone business activity growth slowed in May, and UK retail sales unexpectedly remained strong in May.
The Bank of England held its interest rate steady for the seventh time in a row and signaled restrictive rates ahead. The Swiss National Bank lowered its policy rate for the second time in a row and warned about moderate economic growth in the current year. The Norges Bank held its policy rate steady but stressed that inflation is still too high.