Stoxx 600, FTSE, Fed, Autumn Budget
Skyscrapers and commercial buildings light up in the skyline of London, United Kingdom, on Tuesday, November 18, 2025. UK business leaders have called on Chancellor of the Exchequer Rachel Reeves to ease energy costs and avoid increasing the tax burden on British companies as she prepares this year’s budget.
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LONDON — European stock markets are expected to open higher as expectations increase that the US Federal Reserve will cut interest rates in December.
of england FTSE The German index is expected to open with a 0.25% increase DAX 0.7 percent increase in France CAC 40 Italy, up 0.67% FTSE MIB 0.64% higher according to IG data.
Regional stock markets are likely to follow Wall Street and their counterparts in the Asia-Pacific region with an increase due to expectations that the Fed will cut interest rates at its next meeting on December 9 and 10.
Markets are pricing the probability of a quarter-point interest rate cut by the central bank at almost 85%. According to CME FedWatch tool. New York Fed President John Williams also said there was room for a rate cut on Friday.in the near term.“
Global markets also rose after U.S. Treasury Secretary Scott Bessent told CNBC on Tuesday that there was a “very good chance” Trump could pick a new Fed chairman before Christmas.
While he has said he is meeting with candidates, expectations are shifting toward White House National Economic Council Director Kevin Hassett after Bloomberg reported that he did. emerged as a pioneer for business. Hassett is seen as someone more likely to push for lower rates.
In the UK, all eyes are on the Autumn Budget on Wednesday as Chancellor Rachel Reeves prepares to unveil her spending and tax plans for next year. There are widespread expectations that the finance minister, who is trying to stick to his own rules on spending and borrowing and has a fiscal black hole to fill as a result, will announce a series of tax increases.
Follow CNBC’s Fall Budget live blog throughout the day for the latest news, commentary and announcements. Chancellor Reeves will make his budget announcement at around 12.30pm London time.
There are no other major earnings or data releases in Europe on Wednesday.
— CNBC’s Pia Singh contributed to this market report.
