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European stock markets edge higher; ECB decision awaited

Published 12/12/2024, 07:22 pm
© Reuters
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Investing.com -- European markets traded marginally higher Thursday as investors closely monitored the European Central Bank's final monetary policy decision for 2024. 

At 03:20 ET (08:20 GMT) Germany's DAX gained 0.1%, France's CAC 40 rose 0.3%, while the UK's FTSE 100 edged 0.1% higher.

ECB meeting in focus

Equities trading is set to remain in tight ranges during the European session Thursday, with the focus on the final policy-setting meeting by the European Central Bank.

The ECB is widely anticipated to announce a 25-basis-point interest rate cut, although the possibility of a larger 50-basis-point cut remains given the eurozone economy is at risk of recession, and faces political instability at home and the prospect of a fresh trade war with the United States. 

Alongside this decision, the ECB will unveil its latest quarterly projections on growth and inflation, which could influence market sentiment further.

Adding to the day’s monetary focus, the Swiss National Bank is set to deliver its latest policy decision. 

Analysts and investors are watching for any adjustments that might provide clues about the bank's stance amid ongoing global economic uncertainties.

US inflation data meets expectations

In the United States, the latest inflation data revealed a 0.3% increase in consumer prices month-on-month, with an annual growth rate of 2.7%. 

Both figures aligned with economists’ forecasts, offering some relief to markets after recent volatility.

Producer prices are due later on Thursday, but this would need to be a major surprise to alter the market expectation of a Federal Reserve rate cut for Dec. 18.

Oil prices up amid mixed influences

Oil prices were relatively stable on Thursday as traders assessed a mix of global factors.

By 03:20 ET, Brent crude futures rose by 0.4% to $73.80 per barrel, while West Texas Intermediate (WTI) crude was up 0.3% to $70.48 per barrel.

This steadiness followed a sharp increase in the prior session, driven by expectations of tighter global supply due to potential new U.S. sanctions on Russian oil exports.

Gains were also boosted earlier in the week by China's announcement of additional economic stimulus measures, although OPEC’s recent gloomy outlook on oil demand tempered enthusiasm.

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