Ahead of the European Central Bank and Bank of England’s policy meetings on Thursday, European stock markets saw a sharp increase in trading after the U.S. Federal Reserve hinted at rate cuts for the upcoming year.
Germany’s index increased 1.3%, France’s index increased 1.4%, and the UK index increased 1.7% at 03:10 ET (08:10 GMT).
stocks: ECB, BOE to follow Fed’s lead?
With the benchmark closing at a record high, European equities have trailed the gains in Asia and on Wall Street overnight.
This came after its two-day policy meeting, which ended on Wednesday with interest rates remaining at their pre-expected levels.
The fact that policymakers planned to cut rates at least three times in the upcoming year, however, gave investors more optimism about risk and caused the to drop below 4% for the first time in four months.
When the, the, the and everyone else get together on Thursday in Europe, consistent results are generally anticipated.
Given the region’s sharp decline in inflation, which led the central bank’s chief hawk, Isabel Schnabel, to rule out further rate hikes in an interview earlier this month, the ECB meeting will be especially important.
Important investment bank Goldman Sachs (NYSE:) now projects that the European Central Bank (ECB) will reduce interest rates by 25 basis points at each meeting beginning in April of next year, with the benchmark deposit rate rising from the current rate of 4% to 2.25% by early 2025.
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stocks: EU summit on Ukraine
Investors will likely be watching the summit of European Union leaders in Brussels starting later on Thursday, in addition to the central bank meetings.
In the event that opposition from Hungarian Prime Minister Viktor Orban can be overcome, the meeting is intended to support Ukraine by possibly offering both the beginning of EU membership negotiations and E50 billion in financial aid.
The meeting takes place at a critical juncture for Ukraine, as the war against Russia is about to enter harsh winter combat and the Biden administration has failed to get a $60 billion aid package through Congress.
stocks: Crude rises after inventories draw
Thursday’s increase in oil prices was fueled by the Fed’s dovish stance and a larger-than-expected weekly draw from storage.
The contract increased 0.9% to $74.89 a barrel by 03:10 ET, while U.S. oil futures saw a 0.8% increase to $80.03 a barrel.
According to data from the, which was released on Wednesday, U.S. oil inventories decreased by 4.3 million barrels in the week ending December 8, which is significantly more than the 650,000 barrels predicted.
Nevertheless, this draw follows a number of weeks with strong builds, which may indicate a decline in winter demand.
additionally increased 2.7% to $2,050.55/oz and increased 0.1% at 1.0888.
