European markets are bracing for a downturn Thursday following a global market sell-off triggered by the U.S. Federal Reserve's signal of limited future rate cuts. Investors are also monitoring central bank decisions from the Bank of England and Norges Bank, as well as economic data from Europe.
European markets are expected to decline at the open Thursday, following their global counterparts lower after the U.S. Federal Reserve signaled yesterday that few rate cuts are on the horizon. The anticipated lower open for Europe comes following a Wednesday sell-off on Wall Street after the Fed, which cut its overnight borrowing rate by, signaled there will likely only be two rate cuts in 2025, rather than the four cuts indicated in its previous forecast.
'We moved pretty quickly to get to here, and I think going forward obviously we're moving slower,' Fed Chair Jerome Powell said at the post-meeting press conference. There's more central bank action in Europe Thursday with monetary policy decisions due from the Bank of England and Norges Bank, the central bank of Norway. Investors will also be keeping an eye on European new passenger car registration data, Germany's Gfk consumer confidence figures and Spanish trade data to gauge the health of the region's economy.Chinese yuan weakens past 7.3 as Fed cuts interest rates and ahead of PBOC decision Chinese offshore yuan weakened to 7.3218 on the U.S. dollar on Thursday morning after the U.S. Federal Reserve lowered its key interest rate by 25 basis points in a widely anticipated move. The People's Bank of China is set to release its monthly fixing of benchmark lending rates on Friday. The one-year loan prime rate, which affects corporate and most household loans, was kept at 3.1% last month and the 5-year LPR, a benchmark for mortgage rates, was maintained at 3.6%, following a cut of 25 basis points in October. Chinese authorities vowed to adopt a'moderately loose' monetary policy stance earlier this month, prompting the market to pencil in more rate cuts ahead.The Federal Reserve trimmed its overnight borrowing rate by 25 basis points on Wednesday, in a widely anticipated move. This brings the Fed's borrowing rate to a target range of 4.25% to 4.5%
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