Europe Asia News

According to analysts, the UK’s FTSE index is set to open slightly higher, Germany’s DAX and France’s CAC 40 slightly below flat, while Italy’s FTSE MIB is expected to open down 0.1%.

With the ECB holding its final policy meeting of the year on Thursday, central bank actions will be closely watched by European market participants this week.

The central bank is expected to keep interest rates at 2%, while ECB President Christine Lagarde said eurozone growth forecasts could be revised upward. In September, the ECB raised its annual GDP growth forecast to 1.2%.

The Bank of England, Riksbank and Norges Bank will also announce their final monetary policy decisions for 2025 this week.

The Bank of England’s nine-member Monetary Policy Committee is expected to cut interest rates by 25 basis points to 3.75%, given weak growth and signs that unemployment could rise.

Bank policymakers will closely monitor the UK’s November inflation data due on Wednesday to see whether the downward trend in inflation continues. Economists expect inflation to remain at 3.5%, slightly down from 3.6% in the twelve months through October.

Globally, U.S. stock futures fell after the S&P 500 posted its third decline on Tuesday, as investors assessed the U.S. labor market following the release of October (delayed due to the government shutdown) and November data by the Bureau of Labor Statistics.

The data showed that the U.S. economy lost 105,000 jobs in October but added 64,000 jobs in November.

Asia-Pacific markets were mixed on Wednesday as investors reviewed Japan’s trade data. Japan’s Nikkei 225 was flat, while the Topix fell 0.25%. South Korea’s Kospi rose 0.72% and the small-cap Kosdaq gained 0.19%.

Japan’s SBI Shinsei Bank surged more than 12% following a ¥322 billion ($2.1 billion) IPO, with shares priced at ¥1,450. Australia’s S&P/ASX 200 fell 0.25%. Hong Kong’s Hang Seng edged higher, while mainland China’s CSI 300 slipped slightly.