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European markets are heading for a cautious open Thursday, with major bourses set to open nearly flat as investors await monetary policy announcements from the Bank of England, Swiss National Bank and Sweden's Riksbank.
The flurry of European activity comes after the U.S. Federal Reserve on Wednesday held its key rates, while indicating two quarter percentage point cuts are likely later this year despite the uncertainty presented by U.S. President Donald Trump's trade policy.
Trump's volatile tariff announcements and threats will also be considered by global central banks for their potential impact on global growth, inflation and currency markets. The Bank of England is widely expected to hold rates at its March meeting despite weak economic growth, while market pricing suggests a potential cut in Switzerland — after its annual inflation rate fell to just 0.3% in February. The Riksbank is seen holding rates steady.
The regional Stoxx 600 index has closed higher for the last four sessions, rebounding from last week's 1.22% loss.
Germany's DAX snapped a winning run on Wednesday as investors appeared to "buy the rumor, sell the fact" after lawmakers voted to allow exemptions to its debt rules, unlocking hundreds of billions in defense, infrastructure and climate spending. The potential for the reform had so far driven strong gains in German industrial, manufacturing and defense names this month.
Europe is quiet on the data and earnings front Thursday, though stateside, results are due from Nike, FedEx and Micron Technology.
U.S. futures were higher overnight as the major averages looked to build on a Wednesday rally fueled by the Fed's outlook.
Asia-Pacific markets were mixed after China's central bank kept interest rates steady.
European markets: here are the opening calls
European stock markets looked set for a mixed open to Thursday's session.
IG data showed the U.K.'s FTSE 100 opening 0.14% lower at 8,703 points, France's CAC 40 opening down 0.05% at 8,176 points, and Germany's DAX opening 0.09% lower at 23,274 points. However, Italy's MIB was seen nudging 0.07% higher to 39,066 points.
— Jenni Reid
Copper prices hit highest level since October
Copper prices on listed on the London Metals Exchange notched their highest level since October.
The three-month LME copper contract was last seen trading 0.46% higher at $10,028.5 per metric ton.
In a note published Monday, Citi analysts forecast strength in copper prices this month amid temporarily stronger U.S. copper import demand, as well as broader concentrate and scrap supply constraints.
— Lee Ying Shan
China’s central bank follows U.S. Fed in keeping rates steady as tariff threats pressure yuan
China kept its key lending rates unchanged on Thursday, as Beijing juggles propping up growth and stabilizing its currency amid mounting trade frictions.
The People's Bank of China kept the 1-year loan prime rate at 3.1% and the 5-year LPR at 3.6%, where they have been since a quarter-percentage-point cut in October.
The rate decision follows the U.S. Federal Reserve's move to hold benchmark interest rates. Fed officials, however, indicated likely half a percentage point of rate cuts through 2025.
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—Anniek Bao
Weaker growth, higher inflation 'balance each other out' in Fed forecast, Powell says
U.S. Federal Reserve Chair Jerome Powell speaks at a press conference, following a two-day meeting of the Federal Open Market Committee on interest rate policy, in Washington, D.C., U.S., March 19, 2025.
Nathan Howard | Reuters
Fed Chair Powell said the central bank's forecasts for less economic growth and higher inflation in 2025 somewhat offset each other, explaining the fact that the forecast for rate cuts this year stayed at two.
"At the December meeting, the median was two cuts. So you come in and you see, broadly speaking, weaker growth but higher inflation. And they kind of balance [each other] out," he said.
Again, Powell emphasized the forecasts are "highly uncertain."
— Jesse Pound
English (US)