📆 Thursday, December 12
► European markets opened steady with the Stoxx Europe 600 trading cautiously ahead of the ECB rate decision (13:15 UTC+0). Nevertheless, China-related sectors such as luxury goods and mining stocks rose on the back of improving US-China relations and the upcoming talks between senior US and Chinese officials. US President-elect Donald Trump has also reportedly invited Chinese President Xi Jinping to his inauguration in January. The offshore CNY strengthened. The ECB is expected to cut the key interest rate by 25 basis points, with the tone of the communication after the decision being crucial. SmartTrader Chief Analyst Robert Lindner expects a rather dovish outlook, with the ECB pointing to further monetary easing in 2025. The Swiss National Bank cut its interest rate by 50 basis points, while more than 85% of analysts had expected a smaller 25 basis point cut.
► Wall Street slipped slightly: the Nasdaq fell 0.2% and the S&P 500 fell 0.1%, after a record rally on Wednesday. The S&P 500 rose 0.9% and approached its all-time high, while the Nasdaq 100 gained 1.7%, which also caused the Nasdaq Composite Index to reach the 20,000-point mark for the first time. The November inflation report came in as expected, easing concerns about runaway inflation and raising the likelihood of a 25-basis-point interest rate cut by the Federal Reserve next week to almost 100%. Treasury yields rose slightly, reflecting expectations of a more dovish monetary policy. Traders remain focused on inflation data and corporate earnings, and expect a year-end rally when monetary policy eases and sentiment improves. Two large-cap companies, Broadcom and Costco, report today (after US market close).
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