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European markets open lower as central banks take center stage
Tuesday, 17 December 2024 15:22 WIB | MARKET UPDATE |

European markets opened in negative territory on Tuesday as central banks took center stage this week.

The pan-European Stoxx 600 index opened 0.4% lower with all sectors in negative territory, as did all major European bourses.

The focus of global markets this week is the U.S. Federal Reserve's final two-day policy meeting of the year.

The meeting begins on Tuesday, with the central bank's monetary policy decision due on Dec. 18.

Traders are pricing in a 95% chance of a quarter-point rate cut on Wednesday, according to CME Group's Fed Watch tool.

Investors will also be looking for clues on future policy moves from Chairman Jerome Powell's press conference after the meeting.

The Bank of England then meets on Thursday, with markets so far pricing in a very slim chance of a final rate cut this year.

In other news, Chancellor Olaf Scholz's invitation lost a no-confidence vote in the German parliament on Monday, paving the way for a snap general election on Feb. 23. Scholz wants to lose the motion so that new elections can be held, following the collapse of his coalition government last month.

Overnight, Asia-Pacific markets traded mixed on Tuesday, while U.S. stock futures fell late Monday.

Data releases in Europe on Tuesday will include U.K. unemployment figures and Germany's Ifo business climate and economic sentiment index. There are no major earnings releases.

Source: CNBC

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