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Investing.com - European stock markets were mostly steady on Thursday, as investors kept tabs on hopes for a U.S. Federal Reserve interest rate reduction next month.
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By 04:21 ET (09:21 GMT), the pan-European Stoxx 600 benchmark inched lower by 0.1%, while the FTSE 100 in the U.K. edged down by 0.3%, the DAX in Germany rose 0.4% and the CAC 40 dipped 0.1%.
Despite signs of internal debate between Fed policymakers over a possible borrowing cost reduction at its final meeting of the year in December, the central is now widely expected to bring down rates by 25 basis points. Officials previously rolled out equally-sized cuts at their October and September gatherings, signaling a decision to prioritize a weakening labor market over sticky inflation.
According to CME’s FedWatch Tool, there is a roughly 85% chance the Fed will unveil a quarter-point drawdown at the end of its December 9-10 meeting, up from about 39% a week ago.
These bets, and recently tepid economic data bolstering such expectations, have underpinned a rally in European stocks over the past three sessions. Traders were also eyeing the upcoming release of minutes from the European Central Bank’s last meeting later today, as well as developments in a potential peace deal between Ukraine and Russia.
Markets on Wall Street will be closed for the Thanksgiving holiday on Thursday and will trade in a shortened session on Friday.
In individual stocks, shares of German apparel group Puma spiked on a Bloomberg News report that Chinese peer Anta Sports Products was exploring a possible takeover bid.
Oil muted
Oil prices were subdued in European trade after official data showed a much larger-than-expected build in U.S. crude stocks, while a Washington-backed Ukraine peace framework raised the prospect of more Russian supply returning to markets.
As of 03:33 ET, Brent Oil Futures expiring in January fell 0.1% to $62.49 per barrel, while West Texas Intermediate (WTI) crude futures were broadly flat at $58.63 per barrel.
Both contracts gained over 1% on Wednesday as markets hiked up bets for a Federal Reserve rate cut next month, a move which generally supports crude prices.