European equity markets showed little clear direction on Thursday, with investors adopting a cautious stance ahead of several closely followed central bank policy announcements across the region.
By 08:35 GMT, Germany’s DAX was trading around flat levels, while the UK’s FTSE100 was also largely unchanged. France’s CAC40 edged slightly higher, gaining around 0.2% in early dealings.
Focus on central bank policy
Market participants appeared reluctant to take strong positions as they waited for guidance from multiple central banks that could influence sentiment heading into the new year. The European Central Bank is widely expected to leave interest rates unchanged at 2% later in the day, with inflation close to its medium-term target and the eurozone economy showing relative resilience despite ongoing trade tensions driven by US President Donald Trump’s policies.
Sweden’s Riksbank and Norway’s Norges Bank are also expected to maintain current policy settings at their final meetings of 2025. In contrast, the Bank of England is broadly anticipated to lower interest rates by 25 basis points to 3.75%, down from 4.0%, which would mark the lowest borrowing costs since January 2023.
The case for easing has been reinforced by UK inflation data, with annual consumer price growth slowing to 3.2% in November from 3.6% the previous month, the weakest reading in eight months.
BP shares rise on leadership change
In company news, BP (LSE:BP.) shares moved higher after the energy group announced the appointment of Woodside Energy chief executive Meg O’Neill as its next CEO. She will succeed Murray Auchincloss, who steps down after less than two years in the role.
O’Neill is due to take up the position in April, becoming BP’s first externally appointed chief executive and the first woman to lead any of the world’s five largest oil majors.
Oil prices rebound on Venezuela developments
Oil prices advanced after US President Donald Trump ordered a blockade targeting sanctioned oil tankers entering and leaving Venezuela, raising concerns over potential supply disruptions.
Brent crude futures climbed 0.7% to $60.11 a barrel, while US West Texas Intermediate crude rose 0.8% to $56.27. The move followed Tuesday’s announcement that the blockade would apply to tankers already subject to US sanctions, increasing pressure on Venezuelan President Nicolás Maduro’s government.
Despite the rebound, oil prices remain on track for weekly declines of nearly 2%, weighed down by expectations of oversupply and speculation around a possible peace agreement in Ukraine.
Leave a Reply