FRANKFURT / LONDON (IT BOLTWISE) – The European stock markets are cautious ahead of the upcoming interest rate decision in the USA. The EuroStoxx 50 posted slight losses, while the British FTSE 100 and the Swiss SMI showed different developments. Uncertainty about the economic situation in the coming year remains, although a small interest rate cut is expected.
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European stock markets are in a phase of restraint as the world looks ahead to the US Federal Reserve’s upcoming interest rate decision. The EuroStoxx 50, the leading barometer for the euro zone, recorded a slight decline of 0.34 percent and was quoted at 5,699.10 points. This reluctance reflects the uncertainty that remains about the economic situation in the coming year, despite the expected small interest rate cut.
A mixed picture emerged in other European regions. The British FTSE 100 rose by 0.11 percent to 9,652.80 points, while the Swiss SMI fell by 0.75 percent to 12,834.11 points. These different developments illustrate the mixed signals currently coming from the markets.
Particular attention will be paid to the automotive sector, which showed weakness, particularly in Ferrari shares. Oddo BHF lowered its price target from 430 to 340 euros and downgraded the share from “Outperform” to “Neutral”. This decision was influenced by the expected lower delivery figures for the F80 model, as the CFO announced.
In contrast, the banking sector experienced positive stimuli. HSBC shares rose almost two percent after being upgraded by Bank of America. This appreciation reflects confidence in the stability and growth potential of the banking sector, despite the general economic uncertainties.
There is increased caution on the bond market. Market analyst Luis Ruiz from broker CMC Markets points out that despite the expected continuation of the cycle of cuts, yield curves have risen significantly since the last central bank meeting in October. This increase is attributed to possible disunity within central bank members, with several members potentially voting against a rate cut.
An even stronger upward movement was seen in Vestas shares. Kepler Cheuvreux doubled its price target to 200 Danish crowns and changed its rating from “Reduce” to “Buy”. Onshore wind turbines performed better than expected, causing shares to rise around five percent.
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