The Swiss National Bank held its key lending rate for the second time in a row, citing waning inflation. The Norges Bank increased its key rate by 25 basis points, and signaled rates are likely to be higher for some time.
European markets advanced and awaited the rate decisions from the Bank of England and the European Central Banks. Stocks advanced after the U.S. Federal Reserve held its key lending rate steady and signaled rate cuts over the next two years.
European markets rested after extending gains in the previous three consecutive weeks. Natural gas prices dropped to a two-month low on weak demand growth and ample supplies.
European market indexes advanced for the sixth week in a row, and Germany's consumer price inflation cooled in November, the lowest level since June 2021.
European markets hovered near recent highs, industrial output in Germany declined for the fifth month in a row, and Italian output remained under pressure for the fourth month in a row. Bond yields dropped to the level last seen in May.
European bond yields eased to the lows seen in May after market expectations shifted to a rate cut from a hike in the near future, despite the European Central Bank saying those expectations are premature.
The German trade surplus expanded in October after imports fell at a faster pace than exports. Swiss inflation edged lower in November. Spain's registered jobless people fell in November.
The Eurozone manufacturing index downturn remained solid but showed a slight improvement. The Swiss GDP expanded in the third quarter, led by growth in the service sector. UK home prices rose for the third month in a row but continued their downward slide on an annual basis.
Eurozone inflation eased in November and dropped to the lowest level in 28 months, reflecting a decline in energy prices. The German jobless rate inched up in November.
Stocks in European markets advanced, and tech and real estate stocks led the gainers. Energy stocks traded mixed ahead of the OPEC+ meeting on Thursday.
European bond yields eased to three-month lows following comments from central bank officials who confirmed a stable rate outlook for the next few months.
European markets struggled ahead of the release of inflation reports and uncertainties surrounding the OPEC+ meeting later in the week. French consumer morale rose to a 19-month high, and European bank lending growth decelerated to an 8-year low.
European market indexes traded down in cautious and lackluster trading and the euro hovered at two-month highs. Crude oil prices edged lower after the OPEC+ struggled to agree on a production quota ahead of its meeting this week.
