📆 Wednesday, December 11
► European markets are little changed after a weaker opening following reports about China mulling a weaker CNY and cautious trading ahead of US CPI data. The Stoxx Europe 600 ist flat. Zalando’s 67% premium acquisition of (rival) About You Holding led to a slump in Zalando’s shares (- 4.6%). Investors also await Thursday’s ECB rate decision, which is expected to cut rates to 3.15%.
► In the US, equity futures remained steady, reflecting heightened caution as traders awaited November CPI data—a crucial indicator for the Fed’s policy stance next week. Reports that China might allow the CNY to weaken saw the USD jump to a two-week high. US inflation data is expected to influence market views on rate cuts, with swap markets pricing in an 85% chance of a 0.25% reduction at the December meeting. Analysts highlighted that the re-accelerating U.S. CPI since October makes this reading critical for justifying additional rate cuts in 2025. SmartTrader Chief Analyst Robert Lindner expects today's CPI data from the U.S. to further reinforce the view that the Fed should move more slowly on rate cuts as progress stalls and risks of a renewed acceleration increase – especially if Trump imposes tariffs in 2025.
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