A trader works on the floor of the New York Stock Exchange (NYSE) on October 29, 2025, in New York City, USA, as Federal Reserve Chairman Jerome Powell’s press conference after announcing the Fed’s interest rate cut is shown on a screen.
Brendan McDiarmid | Reuters
LONDON — European stock markets are expected to start the week flat to lower on Monday as global investors focus on the U.S. Federal Reserve’s monetary policy decisions this week.
british FTSE German index is expected to open 0.1% lower. dachshund and french CAC40 flat and italian FTSE MIB According to IG data, it fell 0.17%.
The Federal Reserve is widely expected to cut key interest rates at its final meeting of the year, with traders pricing in a roughly 87% chance of a 25 basis point cut this Wednesday, when the central bank concludes its two-day meeting, according to the CME FedWatch tool.
The Fed’s decision will have implications for other central banks, which hold their final policy meetings of the year this week and next. The Swiss National Bank announced its latest policy update on Thursday, with interest rate decisions expected to be announced next week from the Bank of England and the European Central Bank on 18 December.
The jury is still out on whether the BOE will lower its benchmark interest rate at its meeting, but the ECB is widely expected to keep rates on hold. The Bank of Japan is also scheduled to hold its last policy meeting for 2025 on December 19th.
There were no big gains in Europe on Monday. On the data side, Germany’s industrial production statistics will be announced.
Asia-Pacific markets traded mixed overnight as investors assessed data showing Chinese exports surged more than expected in November. U.S. stock futures were almost flat on Sunday night. U.S. markets rallied on Friday after a delayed September core consumer spending price index was weaker than economists expected.
It was one of the last major economic announcements ahead of the Federal Reserve’s policy meeting this week.
— CNBC’s Alex Harring contributed to this market report.
