European stocks weakened at the opening bell on Monday (December 8th) as global investors focused on this week's US Federal Reserve monetary policy decision.
The pan-European Stoxx 600 was last seen below the flatline. The Fed is widely expected to cut its benchmark interest rate at its final meeting of the year, with traders pricing in about an 87% chance of a 25 basis point cut on Wednesday when the central bank concludes its two-day meeting, according to the CME FedWatch tool.
The Fed's decision will serve as a benchmark for other central banks, which will hold their final policy meetings of the year this week and next. The Swiss National Bank will deliver its latest policy update on Thursday, and next week we will get interest rate decisions from the Bank of England and the European Central Bank on December 18th.
It remains unclear whether the Bank of England will cut its benchmark interest rate when it meets, but the ECB is widely expected to keep rates unchanged. The Bank of Japan will also hold its final policy meeting of 2025 on December 19th.
In corporate news, Unilever's spin-off ice cream business will begin trading on Monday. Magnum Ice Cream Company, which includes Magnum, Ben & Jerry's, Wall's, and Cornetto, has a reference price of 12.80 euros ($14.93) in the company's primary listing in Amsterdam. Secondary listings will also begin trading in London and New York.
Unilever traded 3% lower in early trading. There are no major earnings reports in Europe on Monday. On the data front, German industrial production figures will be released.
Overnight, Asia-Pacific markets traded mixed as investors assessed data showing Chinese exports surged more than expected in November. US stock index futures were nearly flat on Sunday evening. US markets received a boost on Friday after the delayed release of the September core personal consumption expenditures price index came in lower than economists anticipated.
It was one of the last major economic releases ahead of this week's Fed policy meeting. (alg)
Source: CNBC.com
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