Lower inflation and concern that U.S. President Donald Trump's trade war will slow already modest growth have cleared the way for the European Central Bank to cut interest rates at Thursday's policy meeting,

US President Donald Trump's tariff blitz, persistent growth worries and slowing inflation are expected to prompt eurozone rate-setters to lower borrowing costs again on Thursday.

While the inflationary impact on U.S. domestic prices is widely expected to be severe, the effect in Europe will be more mixed, according to analysts.

European shares began June on a dour note as markets grappled with U.S. President Donald Trump's new tariff plans that threatened to reignite a fresh wave of global trade tensions. The continent-wide STOXX 600 slipped 0.

Officials from the European Union and the United States will start a new negotiating push, after President Trump delayed until July 9 tariffs of 50 percent.