Today’s markets analysis on be
European equities opened higher on Wednesday, extending the rebound triggered by renewed hopes of US monetary easing and signs of diplomatic progress in the Ukraine conflict. Softer US data yesterday has strengthened expectations for a Federal Reserve rate cut in December, helping to ease pressure on global risk assets. Meanwhile, Ukrainian President Volodymyr Zelenskiy’s endorsement of a US-backed peace framework added a layer of geopolitical relief.
In Germany, IMF projections offered a mixed picture, which could limit local stocks’ upside. The Fund acknowledged the country’s recent fiscal reform as a foundation for recovery but warned that structural constraints could cap long-term growth. While real GDP is expected to rise gradually to 1.5% by 2027, public debt is also projected to climb, albeit remaining the lowest among G7 peers.
Sector-wise, autos traded under pressure amid reports of job cuts linked to sluggish consumer demand. Conversely, Airbus rose as France and Germany intensified negotiations to salvage the EUR 100 billion Future Combat Air System. A mid-December deadline has now been set to align industrial partners on the next phase of the project.