Bold opening: European markets lean flat as investors brace for pivotal central bank decisions.
LONDON — European equities are expected to start Wednesday relatively unchanged, with traders positioning themselves ahead of key policy announcements. The FTSE, seen nudging modestly higher, faces a softer start for Germany’s DAX and France’s CAC 40, while Italy’s FTSE MIB shows a small 0.1% dip, according to IG data.
Across the Atlantic, central banks take center stage this week. The European Central Bank will deliver its last policy update of the year on Thursday, with markets penciling in a hold at 2%. Still, ECB President Christine Lagarde signaled that euro-area growth forecasts could be revised higher again; the ECB had already lifted its 2024 GDP growth projection to 1.2% in September.
In parallel, the Bank of England, the Riksbank, and Norway’s central bank are also set to announce their final decisions for 2025. The Bank of England’s nine-strong Monetary Policy Committee is expected to trim rates by 25 basis points to 3.75%, reflecting softer growth and early signs that unemployment may be edging higher.
Investors will scrutinize UK inflation data for November due later today to gauge whether disinflation is continuing. Reuters-compiled consensus points to a 3.5% December inflation rate, a touch lower than October’s 3.6% reading.
On the global front, U.S. stock futures slipped after the S&P 500 ended a third consecutive session in the red on Tuesday, as traders weighed the evolving U.S. jobs picture following a Bureau of Labor Statistics release covering October (delayed by the government shutdown) and November.
The October data showed a loss of 105,000 jobs, while November added 64,000 jobs, underscoring a mixed labor market signal.
In Asia-Pacific trading, sessions were mixed as investors interpreted Japan’s trade figures amid ongoing regional data flow.
CNBC’s coverage also notes additional market color from today’s session and ongoing commentary from market reporters.
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