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European equities traded lower on Tuesday, tracking the softer tone from Wall Street, though declines remained contained as investors positioned for a heavy week of central bank decisions and key U.S. data.
At 03:05 ET (08:05 GMT), Germany’s DAX fell 0.6%, France’s CAC 40 dipped 0.2%, and the U.K.’s FTSE 100 eased 0.1%.
Tech drag sets cautious tone
Risk appetite stayed fragile after renewed weakness in global tech shares. The latest leg lower was linked to investor disappointment over guidance and high spending plans from Broadcom and Oracle, reigniting debate around whether AI-related capex is translating into near-term profitability.
Central banks dominate Europe’s calendar
While equity moves were modest, the bigger catalyst for the week is monetary policy:
- ECB (Thursday): Expected to hold rates at 2%, with recent data pointing to a gradual eurozone recovery.
- Riksbank & Norges Bank: Also hold final policy meetings for 2025 this week.
- Bank of England: Seen as the closest call, but markets still lean toward another rate cut, helped by cooling labour-market momentum.
U.S. payrolls headline the data risk
Beyond Europe, markets were bracing for the delayed U.S. nonfarm payrolls report, a key input after the Fed’s recent rate cut and its guidance toward potential additional easing next year.
Consensus expectations cited in your text point to ~50,000 jobs added, a sharp slowdown versus September’s 119,000, which would reinforce the narrative of a cooling U.S. labour market.
Corporate and commodities highlights
- TotalEnergies signed a 21-year renewable power supply deal to support Google’s data centres in Malaysia (1 TWh).
- Rolls-Royce announced plans to start a £200 million interim share buyback in January.
- Oil prices fell on rising hopes for progress toward a Russia-Ukraine peace deal, which could eventually increase Russian supply if sanctions are eased:
- Brent down 0.8% to $60.04
- WTI down 0.9% to $58.18
