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European markets open higher ahead of Fed policy decision
Wednesday, 18 December 2024 15:10 WIB | MARKET UPDATE |

European stocks opened higher on Wednesday as investors await the latest monetary policy decision by the U.S. Federal Reserve.

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

Investors will also be looking closely at the Fed's Summary of Economic Projections and Fed Chair Jerome Powell's press conference, for clues on what might happen in the coming months.

The central bank is widely expected to temper runaway expectations for further interest rate cuts in the coming year, especially as inflation remains stubbornly high.

The data released on Wednesday includes the latest U.K. inflation rate. The data comes ahead of the Bank of England's monetary policy meeting on Thursday, with markets so far pricing in little chance of a rate cut later this year.

Asia-Pacific markets traded mixed overnight while U.S. stock futures were little changed.

Source: CNBC

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