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European Stocks Steady as Traders Await Fed Cut Decision

Investors weigh an expected quarter-point U.S. rate cut that could shape European policy signals later this month.

Overview

  • The STOXX 600 edged up 0.1% by mid-morning, with financials, industrials and defense names supporting the tape.
  • Money markets implied about an 87% chance of a 25-basis-point Fed cut when the meeting concludes on Dec. 10, per CME FedWatch.
  • The European Union said it reached a deal to simplify sustainability rules, leaving most companies exempt from formal reporting.
  • Thyssenkrupp warned of a net loss of up to €800 million in 2026 and its shares fell sharply, while British American Tobacco slid after guiding 2026 results to the lower end of its mid-term range.
  • Deutsche Bank downgraded Volvo and trimmed its target for Daimler Truck on U.S. market weakness, and traders also parsed President Donald Trump’s comment that Nvidia could ship H200 chips to approved Chinese buyers if the U.S. takes a 25% cut.