On Wednesday, European stock market investors were somewhat cautious. You are expecting important US economic data. Around noon, the EuroStoxx 50 Index rose 0.1 percent to 3,933.55 points. The French Cac 40 has remained virtually unchanged. Britain’s FTSE 100 benefited from the strength of oil and commodities stocks. The index rose 0.41 percent to 7,483.45 points.
“Wall Street is facing a long weekend, and the question is how to start this year’s Christmas business, which traditionally begins with Thanksgiving and Black Friday,” explained Jürgen Molnar, Capital Markets Strategist, of RoboMarkets. “Until the first numbers are on the table, investors will likely remain cautious in the current consolidation phase.” Because of Thanksgiving there will be no trading on Thursday, only short trading on Friday. Many investors use this for a long weekend.
In addition to a series of other US economic data, the US Federal Reserve meeting minutes are also on the agenda on Wednesday. “Some Fed representatives have recently inserted values of five percent and more into the ‘final rate’ debate,” Helappa says. “Market interest rate expectations have risen again accordingly, after the highest interest rate was priced well below five percent in these meanwhile.”
The demand for oil and commodities stocks has returned again. Banking stocks also posted modest gains. The only exception was Credit Suisse, whose shares fell 4.7 percent. Tough market conditions continue to cause problems for the ailing flagship bank. In the fourth quarter, a loss of billions is likely to occur again, mainly because the investment bank is still deep in the red.
In a commentary, JPMorgan expert Kian Abu Hussein wrote that the bank has not yet succeeded in achieving stability in its business. In the asset management sector, the institute had to contend with an outflow of money during the quarter that rival UBS did not see on an annual basis during the financial crisis.
Thanks to profits from its Asian holdings, Prosus has gained nearly three percent in the technology sector. UBS said the investment firm’s goal of becoming profitable in the first half of 2025 exceeded previous expectations.
Auto stocks and real estate stocks rank at the bottom of the field. As a result, the cyclical and interest-sensitive sectors were once again under slight pressure, which is a sign of a certain degree of caution in the markets.