European Markets Open Lower as Central Banks Take Center Stage
The focus of global markets this week is the U.S. Federal Reserve’s final two-day policy meeting of the year. The meeting begins Tuesday, with the central bank’s monetary policy decision due Dec. 18.
Traders are pricing in a 95% chance of a quarter-point rate cut on Wednesday, according to CME Group’s Fed Watch tool. Investors will also be looking for clues on future policy moves from Chairman Jerome Powell’s press conference after the meeting.
The Bank of England then meets on Thursday, with markets so far pricing in only a slim chance of a final rate cut of the year.
In other news, Chancellor Olaf Scholz lost a no-confidence vote in the German parliament on Monday, paving the way for a snap general election on Feb. 23. Scholz wanted to lose the vote in order to hold a new election. The move came after the collapse of his coalition government last month.
Overnight, Asia-Pacific markets traded mixed on Tuesday, while U.S. stock futures were slightly lower on Monday night.
Data releases in Europe on Tuesday will include U.K. unemployment figures and Germany's Ifo business climate and economic sentiment index. There are no major earnings releases.
Source: CNBC
