European Markets Open Higher Ahead of Rate Cut
European markets moved higher at the start of the session, as regional investors await the European Central Bank’s (ECB) final monetary policy decision of the year.
The pan-European Stoxx 600 index rose 0.14% with all major bourses and most sectors trading in the green. Oil and gas stocks rose 0.92%, while media stocks fell 0.28%.
The central bank is set to cut interest rates for the last time this year on Thursday, with economists expecting a 25 basis point cut rather than the previously expected “jumbo” 50 basis point move. The ECB will also release its quarterly macroeconomic projections on growth and inflation.
The Swiss National Bank will also announce its latest monetary policy decision on Thursday.
This comes as traders continue to digest the latest inflation data from the U.S. The figures showed that consumer prices rose 0.3% month-on-month and grew at a 12-month rate of 2.7%, in line with economists’ forecasts.
The producer price index report is due on Thursday. The figures mark the last major economic data release before the Federal Reserve’s policy meeting next week.
Traders are still betting that the Fed will cut interest rates; Fed fund futures are priced at a greater than 98% probability that the central bank will do so at the meeting, according to the CME’s FedWatch Tool.
Overnight, Asia-Pacific markets were mostly higher following a post-inflation data rally on Wall Street that saw the Nasdaq Composite cross the 20,000 threshold, hitting an all-time high and a record close. U.S. stock futures were lower Thursday morning.
Source: CNBC
