European stocks close higher as Fed rate cut expectations rise; UK budget in focus
European stocks ended Wednesday in positive territory amid rising expectations that the U.S. Federal Reserve will cut interest rates in December.
The pan-European Stoxx 600 finished the session almost 1.1% higher, with most sectors and major regional bourses in the green.
Regional indexes are following their counterparts on Wall Street and in the Asia-Pacific region higher amid expectations that the Fed will cut when it next meets on Dec. 9-10.
Markets are pricing in almost an 85% chance of a quarter percentage point cut by the central bank, according to the CME FedWatch tool. New York Fed President John Williams also said on Friday that there was room to lower rates “in the near term.”
Global markets also got a boost after U.S. Treasury Secretary Scott Bessent told CNBC on Tuesday that there was a “very good chance” that Trump could name a new Fed chair before Christmas.
While he said he was interviewing candidates, expectations are shifting toward White House National Economic Council Director Kevin Hassett, after Bloomberg reported he had emerged as a frontrunner for the job. Hassett is viewed as someone more likely to push for lower rates.
Source : Cnbc.com
