European equities advanced on Monday, lifted by growing confidence that the U.S. Federal Reserve could begin cutting interest rates as early as next month.
By 08:02 GMT, Germany’s DAX was up 0.7%, France’s CAC 40 gained 0.6%, and the U.K.’s FTSE 100 added 0.4%.
Fed optimism fuels early-week momentum
European bourses tracked the upbeat tone from Asian markets after influential Federal Reserve official John Williams said late last week that U.S. rates could decline “in the near term.”
Investors now see a 69.3% probability of a 25-basis-point cut at the Fed’s December 9–10 meeting, according to the CME FedWatch tool. The expectation of lower borrowing costs has helped global indices recoup some of the losses from the recent pullback, particularly in heavily valued AI-linked technology stocks.
U.K. budget in focus as Germany awaits Ifo data
In Europe, attention turns to Germany’s Ifo business climate index, due later Monday, which is forecast to show a modest improvement for November.
In the U.K., markets are bracing for Wednesday’s Autumn Budget. Finance Minister Rachel Reeves is widely expected to announce tax increases to stabilize public finances, after years of sluggish economic growth since the 2007–08 financial crisis. Though the Labour government promised to revive Britain’s growth trajectory, Reeves may need to raise tens of billions of pounds in taxes for the second time since the election to meet borrowing rules, avoid a bond-market backlash, and boost welfare spending.
Retailers eye Black Friday kickoff
With few major earnings reports scheduled, the week is likely to see lighter trading volumes—Japan is closed for a holiday today, and U.S. markets will pause for Thanksgiving on Thursday.
Black Friday, which follows immediately after, marks the unofficial start of the crucial holiday shopping season for retailers across Europe and the U.S.
Alibaba (NYSE:BABA) shares rose sharply after its redesigned consumer AI app, Qwen, saw a strong debut in public beta testing, reviving optimism about the company’s generative AI ambitions.
Oil stabilizes as traders monitor Ukraine peace efforts
Crude oil prices steadied after last week’s slump as markets assessed the implications of progress in Russia-Ukraine peace talks.
Brent crude rose 0.3% to $61.75 per barrel, while West Texas Intermediate edged up 0.1% to $57.85.
Both benchmarks fell around 3% last week, hitting their lowest levels since October 21, amid concerns that a peace agreement could pave the way for increased Russian supply on global markets.
Over the weekend, the U.S. and Ukraine reported meaningful progress on a potential peace framework.
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