Something is beginning to shift in Europe. Inflation is easing, growth is slowing, and markets are responding quickly to the prospect of lower interest rates. While policymakers remain cautious, investors are increasingly positioning for a change in direction. Recent comments from central bank officials have fuelled sharp moves, particularly in interest-sensitive sectors. With key data releases and policy meetings approaching, sentiment remains highly reactive. The balance between caution and optimism will likely define market behaviour in the weeks ahead.