Global Economy
European Markets Poised for Gains as Fed Rate Cut Looms
European equity indexes are expected to open higher on Thursday, Dec 4, 2025, after a suite of weaker‑than‑expected US economic releases bolstered bets that the Federal Reserve will cut rates at its Dec 9‑10 meeting. Futures point to modest gains for the CAC 40, DAX, FTSE 100 and the STOXX 600, reflecting improved investor sentiment ahead of the Fed decision. The rally is driven by fresh data showing cooler inflation and slowing growth in the United States, reinforcing the view that the Fed will lower borrowing costs to support the economy. While optimism is growing, analysts warn that any surprise from the Fed could quickly reverse the upbeat tone.
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European equities set for a positive start
Futures indicate that major European indexes are likely to open higher on Thursday, Dec 4, 2025, as softer-than-expected US economic data fuels bets that the Federal Reserve will deliver a rate cut at its meeting on Dec 9‑10.
- CAC 40 (Paris) futures up about 0.49%.
- DAX (Frankfurt) futures up roughly 0.66%.
- FTSE 100 (London) futures climbing around 0.33%.
- STOXX 600 futures pointing to a gain of roughly 0.47%.
The market mood has improved, with investors reassessing the risk of a slowing economy and the likelihood that the Fed will lower borrowing costs to provide support. The optimism comes after a series of US reports that showed weaker inflation, labor and growth figures, reinforcing expectations of a monetary pivot.
Analysts caution that the rally could be modest and that any unexpected Fed language could quickly swing sentiment, but for now the European trading floor appears set to turn green.