Skyscrapers and commercial buildings on the skyline of the city of London, England, are illuminated on Tuesday, November 18, 2025. British business leaders have called on Chancellor of the Exchequer Rachel Reeves to ease energy costs and avoid an increase in the tax burden for British businesses as she prepares this year’s budget.
Bloomberg | Bloomberg | Getty Images
LONDON—European stock markets rose slightly on Wednesday amid growing expectations that the U.S. Federal Reserve will cut interest rates in December.
pan-european Stocks 600 The index rose about 0.8% in London by 1:58 p.m. (8:58 a.m. ET), with most sectors and major regional stock exchanges in positive territory.
Regional indexes have followed Wall Street and Asia-Pacific indexes higher on expectations that the Federal Reserve will cut interest rates at its next meeting on December 9-10.
According to the CME FedWatch tool, the market has priced in an almost 85% chance of the central bank cutting interest rates by a quarter of a percentage point. New York Fed President Williams also said Friday that there is room for rate cuts “in the short term.”
Global markets also received a boost after Treasury Secretary Scott Bessent told CNBC on Tuesday that it was “very likely” that President Trump would name a new Fed chairman before Christmas.
He has said he is meeting with candidates, but after Bloomberg reported that he had emerged as his frontrunner, hopes have shifted to White House National Economic Council Chairman Kevin Hassett. Hassett is seen as the person likely to push for rate cuts.
autumn budget
In the UK, all eyes are on Wednesday’s autumn budget, when Chancellor Rachel Reeves is expected to announce next year’s spending and tax plans. The Chancellor of the Exchequer is widely expected to announce massive tax increases as he seeks to stick to his own rules on spending and borrowing, forcing him to fill a fiscal black hole.
The Office for Budget Responsibility, the country’s fiscal watchdog, unexpectedly released its economic and fiscal outlook ahead of the autumn budget, causing UK government bond yields to see-sawn.
Benchmark 10-year government bonds fell as much as 4 basis points after the announcement, then rose, but quickly reversed higher. Last time it was down 2 basis points. Short-term pure gold followed a similar pattern.
Follow CNBC’s Fall Budget Live Blog throughout the day for all the latest news, comments and announcements. Prime Minister Reeves announced his budget statement at around 12:30 pm London time.
British banks also experienced sharp price movements during trading, initially rising on hopes that additional taxes would be waived in the autumn budget, but selling off following the unexpectedly early release of budget details. barclays Last seen 3% higher, natwest Approximately 2.5% ahead. Lloyd’s It increased by 4.2%.
Mr Reeves confirmed the introduction of a council tax on properties worth more than £2 million ($6.63 million). British house and building names persimmon Although it fell by almost 0.2%, Taylor Wimpey 0.1% reduction, Berkeley Group fell 1.3%, matching their previous losses. Barratt Redrow After an initial dip, it returned to the green and ended up rising 0.4%.
sterling The dollar rose, trading 0.2% higher at $1.319.
European investors are also closely monitoring developments in the U.S.-led Ukraine peace agreement negotiations. On Tuesday, US President Donald Trump said a deal was “very close”. Trump added that U.S. Special Envoy Steve Witkoff will meet with Russian President Vladimir Putin in Moscow, and Army Secretary Dan Driscoll will also “meet with the Ukrainian side.”
This came after reports emerged that Kiev had accepted revised terms of a peace plan originally drafted by the United States.
European defense stocks rose on Wednesday, with Germany’s line metal While adding just over 1.3% Mildev Group It rose by about 0.3%, making it the highest increase rate of 3.3% compared to previous years.
Elsewhere, Novo Nordisk shares rose 4.7% after the US Centers for Medicare and Medicaid Services announced new negotiated prices for the company’s best-selling drugs Ozempic and Wigovy starting in 2027. The new price for Medicare patients will be $274, a 71% discount from the current list price.
— CNBC’s Pia Singh contributed to this market report.
