President Nausėda on the evening of the 25th nominated Social Democratic chairman Mindaugas Sinkevičius as candidate for prime minister. Parliament is scheduled to vote on the new government on the 30th. The Ruginienė government resigned on the 23rd and is serving in a caretaker capacity. Under Lithuanian law the new PM is proposed by the Social Democratic Party, which holds the largest number of seats in parliament.

Falling oil prices have reduced the risk of persistent inflation and prompted traders to pare ECB tightening bets; since April markets have, for the first time, stopped fully pricing a 25bp ECB hike by end-2026. Two weeks ago, ahead of the ECB lifting the deposit rate to 2.25%, the 25bp move had been fully priced. Two-year euro-area inflation swaps have fallen from above 3% in April to below 2.2%. Mizuho multi-asset strategist Evelyne Gomez-Liechti said market testing of hike expectations is reasonable, though some ECB officials remain cautious and have not ruled out further tightening. Economists say if next week’s euro-area inflation prints meet forecasts, June YoY headline inflation would ease to about 3.1% from May’s 3.2%, further reducing pressure on policymakers.

A-share property development names rallied: Yingxin Development touched the daily limit, Hefei Urban Construction had earlier hit the limit; Zhangjiang Hi‑Tech and Rongfeng Holdings rose over 6%, Vanke A gained more than 5%.