European markets saw modest gains on Tuesday as investors kept a close eye on the U.S. Federal Reserve’s upcoming policy announcement. The pan-European Stoxx 600 opened 0.17% higher, reflecting cautious optimism across major trading hubs. Key indices showed mixed movements, with Germany’s DAX up 0.50% and Italy’s FTSE MIB rising 0.74%, while France’s CAC 40 and the UK’s FTSE 100 experienced minor declines.
Market participants widely expect the Fed to cut its key interest rate by a quarter-point at its final meeting of the year. According to CME’s FedWatch tool, there is an 87% probability of a reduction. Analysts say the Fed’s move will influence European central banks, including the Swiss National Bank, Bank of England, and European Central Bank, all of which are scheduled to announce monetary policy decisions later this month.
In corporate news, the European Union has agreed to simplify corporate sustainability laws, exempting many companies from mandatory reporting. Marie Bjerre, Denmark’s minister for European affairs, hailed the update as a step toward reducing bureaucratic burdens and boosting the EU’s business competitiveness, highlighting the bloc’s commitment to fostering growth and innovation.
Investors are also responding to U.S. developments. President Donald Trump indicated that Nvidia may ship its H200 AI chips to approved customers in China, with the U.S. taking a 25% share of proceeds. In addition, Deutsche Bank downgraded Volvo and Daimler Truck, citing challenges in the U.S. market and mixed forecasts for the coming year, prompting modest declines in their early trading sessions. Meanwhile, Magnum Ice Cream debuted on the Amsterdam stock exchange following its spin-off from Unilever, showing a slight uptick in shares.
Looking ahead, Tuesday’s economic calendar features key data releases, including German exports, Dutch inflation, and UK retail sales. Overnight trading in Asia saw a broad decline, while U.S. futures remained largely flat, signaling that investors are still weighing the impact of upcoming central bank decisions on global market trends.
source: cnbc