The major European markets moved slightly higher after a cautious start on Thursday as investors digested the Federal Reserve’s interest rate decision and Fed Chair Jerome Powell’s comments post the monetary policy meeting.
The Fed lowered interest rate by 25 basis points, as widely expected, on Wednesday.
At a news conference following the decision, Fed Chair Jerome Powell said the Fed would have to “wait and see” before making its next move, adding a rate hike isn’t in the base case.
Fed members suggested just one further cut in their 2026 central projection, but traders bet risks are skewed towards more cuts.
Meanwhile, the Swiss National Bank decided today to keep its key interest rate at 0%. SNB’s decision comes against the backdrop of 0% inflation in Switzerland in November, which is at the lower end of the central bank’s target range of 0-2%.
Amid somewhat lackluster moves, the benchmark indices of Germany, France and the UK edged up slightly.
The U.K.’s FTSE was up 8.72 points or 0.1% at 9,664.25. Germany’s DAX gained 24.65 points or 0.1% at 24,134.68, and France’s CAC 40 advanced 22.01 points or 0.27% ato 8,044.70. Switzerland’s SMI was down 5.05 points or 0.04% at 12,914.30, while the pan European Stoxx 600 moved up 1.38 points or 0.24% t0 579.54.
The Magnum Ice Cream Company stock, up 4.8%, was the top gainer in U.K.’s FTSE 100 index. Ashtead Group surged 4%, while Convatec Group, Berkeley Group Holdings, Weir Group, Whitbread, Pearson, Sainsbury (J), Diageo and Metlen Energy & Metals gained 1.5 to 2.4%.
Entain drifted down 3.7%, while Associated British Foods and Informa lost 2.1% and 1.2%, respectively. Lloyds Banking Group, Natwest, The Sage Group and Smith & Nephew posted moderate losses.
In the German market, Daimler Truck Holding, Merck, Munich RE, Heidelberg Materials, Siemens, Deutsche Post, Brenntag, Rheinmetall, Commerzbank, BASF, Continental and Beiersdorf gained 1 to 3%.
Symrise drifted down 3%, while Deutsche Boerse, E.ON and SAP lost 2.2 to 2.7%. BMW lost about 1.4%.
In the French market, Schneider Electric climbed about 3%, attracting attention after the the company said it plans a share buyback program of €2.5 billion-€3.5 billion and intends to pursue a divestment program of €1.0 billion- €1.5 billion in revenues, with both initiatives to be completed by 2030.
TP surged 3.5%. Saint Gobain, Capgemini and Carrefour gained 2.3 to 3%. Vinci, Pernod Ricard and AXA also posted strong gains.
Meanwhile, Stellantis, Renault and Legrand shed 3.2%, 2.5% and 2.1%, respectively. STMicroElectronics dropped by about 1.6%.
Market Analysis
Major European Markets Slightly Higher In Cautious Trade
2025-12-11 12:25:12
