European stocks rose on Wednesday, amid growing expectations that the US Federal Reserve will cut interest rates in December.
The pan-European STOXX 600 index rose 0.3% to 569.69 points, Germany’s DAX index climbed 0.2% to 23,518.10 points, Britain’s FTSE index gained about 0.1% to 9,625.19 points, and France’s CAC index advanced 0.3% to 8,053.11 points.
Markets are currently pricing in an almost 85% probability of a quarter-point rate cut, according to the CME FedWatch tool. New York Federal Reserve President John Williams said on Friday that there is room for an interest rate cut in the not-too-distant future.
Global markets also received additional support after U.S. Treasury Secretary Scott Bisent told CNBC on Tuesday that there was a very good chance that President Trump would name a new Federal Reserve chairman before Christmas.
Expectations are leaning towards the selection of Kevin Hassett, director of the White House National Economic Policy Council, who is seen as the most likely to push interest rates down.
In the UK, all eyes are on the autumn budget, due on Wednesday, when Chancellor Rachel Reeves will unveil spending and tax plans for next year. Markets are anticipating a package of tax increases to address the budget deficit, given the government's commitment to strict rules on spending and borrowing.
There are no major corporate earnings announcements or important economic data releases in Europe on Wednesday.
