European markets dip amid rate cut uncertainty

Investing.com -- European markets traded lower on Thursday after Wall Street’s sell-off following the Federal Reserve’s announcement of limited rate cuts ahead.

At 3:10 ET (8:10 GMT), Germany’s DAX fell 1.1%, France’s CAC 40 edged up 0.2%, and the UK’s FTSE 100 slipped 0.1%.

The Federal Reserve reduced its key interest rate by 25 basis points to a range of 4.25%-4.5%. However, it suggested only two rate cuts in 2025, down from the four previously forecasted. This cautious outlook dampened investor sentiment globally.   Key European central bank decisions expected

Key monetary policy decisions are anticipated on Thursday from the Bank of England and Norges Bank, Norway's central bank. These decisions will be closely scrutinized for their potential economic impact.

Additionally, investors will analyze European car registration figures and Spanish trade data to assess economic health. Consumer sentiment shows gradual improvement

As per GfK and NIM, consumer confidence improved slightly in December. Income expectations and purchasing willingness increased, while savings propensity declined. 

The consumer climate is projected to rise 1.8 points to -21.3 in January 2025, up from -23.1 in December. Oil prices dip amid stronger dollar

Crude oil prices fell on Thursday, pressured by a strengthening U.S. dollar and mixed U.S. inventory data. 

At 3:10 ET Brent futures declined 0.7% to $72.81 a barrel, while US crude futures (WTI) dropped 1.6% to $69.44, reflecting concerns over weaker winter demand.

Source: Investing.com