European stock markets showed slight gains on Thursday, as investors awaited the European Central Bank’s (ECB) final monetary policy decision for 2024. At 03:20 ET (08:20 GMT), Germany’s DAX was up by 0.1%, France’s CAC 40 gained 0.3%, and the UK’s FTSE 100 rose by 0.1%.
ECB Meeting in Focus
The focus of the trading session remained on the ECB’s upcoming policy meeting, with expectations high for a 25-basis-point interest rate cut. However, some analysts suggest that a larger 50-basis-point cut is possible, given the eurozone’s economic struggles, including a potential recession, political instability, and the looming threat of a new trade war with the United States. Alongside the rate decision, the ECB is also set to release its latest projections on economic growth and inflation, which could significantly impact market sentiment.
Additionally, the Swiss National Bank (SNB) is expected to announce its own policy decision, with investors looking for any hints that could shed light on its stance amid global economic uncertainties.
US Inflation Data Meets Expectations
In the United States, inflation data came in as expected, with consumer prices rising by 0.3% month-on-month and an annual growth rate of 2.7%. These figures were in line with economists’ forecasts and provided some relief to markets following recent volatility. Later in the day, producer price data will be released, but analysts expect it to have little effect on the market unless it surprises to a significant degree. The Federal Reserve’s anticipated rate cut on December 18 remains the key focus for market participants.
Oil Prices Stabilize Amid Mixed Influences
Oil prices showed stability on Thursday, following a surge in the previous session. By 03:20 ET, Brent crude futures rose by 0.4%, reaching $73.80 per barrel, while West Texas Intermediate (WTI) crude gained 0.3%, reaching $70.48 per barrel. The gains were largely driven by expectations of tighter global supply, particularly due to potential new U.S. sanctions on Russian oil exports. Additionally, China’s announcement of new economic stimulus measures earlier in the week supported oil prices, though a recent negative outlook on oil demand from OPEC tempered the enthusiasm.
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