📆 Wednesday, December 18
► European markets are little changed, with Euro Stoxx 600 futures trading flat (+0.1%) as investors awaited pivotal central bank decisions this week. UK inflation data met expectations, with the annual rate climbing to 2.6% in November from 2.3% the prior month. Core CPI rose to 3.5% YoY, signaling ongoing inflationary pressures. Traders are also focused on the Eurozone's upcoming inflation data, which will be crucial in determining the ECB’s monetary policy path heading into 2025. Inflation in the Eurozone is expected to from 2% in October to 2.3% in November (YoY) but more important core inflation to stay steady at 2.7%.
► U.S. markets were subdued ahead of the Federal Reserve’s interest rate announcement later today (19:00 UTC+0). Analysts widely expect a 25 basis point rate cut, which would bring the Fed Funds Rate to 4.50%. However, the focus is on the Fed’s economic projections and Chair Jerome Powell’s commentary, particularly regarding rate expectations for 2025. Bank of America forecasts the Fed may lower rates to 3.75% next year, suggesting three more cuts, though Powell could signal a cautious approach given recent strong retail sales (+0.7% in November) – however, we have also seen weaker industrial and manufacturing production. Futures pointed to slight gains, with the S&P 500 and Nasdaq 100 currently trading very slightly higher (+0.05 % – +0.1 %; Dow Jones at +0.15%).
Subscribe to see more