European stocks opened higher on Friday, signaling cautious optimism among global investors as attention turns to next week’s Federal Reserve policy meeting. The pan-European Stoxx 600 climbed 0.3% shortly after the bell, with most sectors posting gains and major regional indices—including the FTSE 100, DAX, and CAC 40—trending upward. Analysts say markets are positioning themselves ahead of potential changes in U.S. interest rates.
Investors are closely monitoring expectations that the Fed may cut its key interest rate by a quarter point, with money markets pricing in an 87.1% probability according to the CME’s FedWatch tool. Friday’s U.S. economic releases, including delayed consumer spending data for September, the University of Michigan’s December consumer survey, and the personal consumption expenditures index, will provide further clues about the central bank’s next steps.
The monetary spotlight will shift back to Europe later this month, when the Bank of England, the European Central Bank, Sweden’s Riksbank, and Norway’s Norges Bank are all scheduled to announce interest rate decisions on December 18. Meanwhile, investors are keeping a close eye on geopolitical developments, including ongoing negotiations over the Ukraine conflict, which continue to influence market sentiment across the continent.
In corporate news, Swiss Re shares fell 5.6% after the reinsurer outlined its 2026 financial targets, projecting a net profit of $4.5 billion. On the upside, U.K. online grocery firm Ocado surged 10.2% after U.S. partner Kroger reportedly agreed to pay $350 million in compensation following the cancellation of a planned distribution center in the U.S., highlighting the significant impact of corporate partnerships on stock performance.
European economic data due on Friday includes EU GDP growth, German factory orders, France’s trade balance, and Italian retail sales. Market participants say these indicators, combined with U.S. data and central bank signals, will shape trading sentiment heading into the holiday season and the Fed’s anticipated policy shift.
source: cnbc