European markets opened lower on Monday as traders prepared for central bank action in the final week.
regional Stoke 600 The index opened 0.09% lower, with tourism stocks leading the decline. France’s CAC 40 index fell 0.36% as investors assessed credit rating agency Moody’s surprise decision on Saturday to downgrade the country’s rating to Aa3 from the previous Aa2. The agency said French public finances will be weakened by continued political instability in the coming years.
Francois Bellew was named France’s fourth prime minister of the year on Friday.
Entity formerly part of French media group Vivendi Now on the market in Europe. French broadcaster Canal+ debuted in London, advertising and PR agency Havas debuted in Amsterdam and publisher Louis Hachette Group debuted in Paris.
In Europe, investors will be keeping a close eye on Berlin on Monday, where parliament is due to hold a vote of confidence. German Chancellor Olaf Scholz is expected to call on the German parliament today to declare no confidence in him in order to hold early polls in February. The move follows the collapse of his governing coalition last month.
In addition, the Federal Reserve’s monetary policy meeting to be held in the United States on December 18 is the focus of global markets this week. The CME Fedwatch tool predicts that the probability of the Federal Reserve cutting interest rates by 25 basis points is 96%. Traders will closely monitor the latest policy statement and Federal Reserve Chairman Jerome Powell’s press conference for clues on the path of interest rates.
The Bank of England will meet on December 19, and so far, markets are pricing in a slim chance of an eventual rate cut this year.
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