Noor Trends News, Technical Analysis, Educational Tools and Recommendations
European stocks rose on Thursday, extending recent gains as investors positioned for a widely expected interest rate cut by the U.S. Federal Reserve next week and awaited fresh eurozone data.
By 03:05 ET (08:05 GMT), Germany’s DAX index was up 0.8%, France’s CAC 40 gained 0.5%, and the U.K.’s FTSE 100 added 0.1%.
Fed rate cut widely expected next week
Sentiment in Europe was supported by expectations that the Fed will ease policy at its December 9–10 meeting, after a run of softer U.S. economic indicators.
The ADP private payrolls report showed hiring slowing in November, while the ISM services index pointed to softer activity in the services sector. The main remaining datapoint this week is Friday’s personal consumption expenditures (PCE) inflation report, the Fed’s preferred gauge, which could further refine expectations for the policy outlook.
Futures markets currently price in roughly a 90% probability of a 25-basis-point rate cut on Dec. 10, according to the CME FedWatch tool.
Eurozone retail sales in focus
In the eurozone, attention is turning to October retail sales, due later in the session, for indications of consumer strength. Economists expect sales to be flat on the month, an improvement from the 0.1% decline recorded in September. Construction activity data are also scheduled for release.
The European Central Bank meets later this month and is widely expected to leave interest rates unchanged at its final meeting of the year, in contrast to the Fed.
ECB President Christine Lagarde said on Wednesday that core inflation measures are broadly consistent with the ECB’s target and that overall inflation is likely to remain close to 2% in the coming months. She added that updated Eurosystem staff projections, due on Dec. 18, will provide more detail on the outlook for growth and inflation.
Corporate movers: Rio Tinto, SSP Group, Frasers, Aurubis
In corporate news, Rio Tinto upgraded its 2025 copper production guidance and cut unit cost forecasts as part of a new restructuring strategy outlined at its 2025 Capital Markets Day.
SSP Group, which operates food and beverage outlets in airports and rail stations, reported a resilient performance for fiscal 2025, with revenue rising 6% and underlying operating profit up 8.4%.
Frasers Group maintained its full-year profit guidance of £550–600 million despite a 2.8% drop in half-year adjusted profit. Chief executive Michael Murray warned that excess inventory continues to weigh on the sector, driving more promotional activity.
German multimetal producer Aurubis said net cash flow jumped nearly 30% in fiscal 2024–25 to its highest level in three years, and proposed an increase in its dividend.
