Investing.com — European markets traded in mixed fashion on Monday, as traders anticipated the Federal Reserve’s final policy meeting of the year on December 18.
At 3:10 ET (8:10 GMT), Germany’s gained 0.1%, the UK’s remained unchanged, while France’s fell 0.2%.
Investors are keenly watching for updates in the Fed’s policy statement and Fed Chair Jerome Powell’s press conference for further guidance on the interest rate outlook.
Berlin in focus as German parliament prepares for confidence vote
Chancellor Olaf Scholz is expected to ask the German parliament to issue a vote of no confidence in him, on Monday. This move is aimed at triggering early elections in February, following the collapse of his coalition government last month.
Investors are also monitoring the release of flash PMI data for the manufacturing and services sectors in France and Germany, which could provide insights into the health of the Eurozone economy.
UK manufacturers report sharp decline in business confidence
A new survey from Make UK and BDO revealed that British manufacturers’ business confidence has plunged to its lowest level in a year, driven by rising costs.
While output and orders remain stable and companies continue with recruitment and investment plans, sentiment has deteriorated significantly since the third quarter.
In Q3, 58% of manufacturers expressed optimism about the economic outlook, a stark contrast to the current report.
Now, 70% of manufacturers have reported cost increases of up to 20% in the past year, with 8% seeing cost surges as high as 50%.
Additionally, 86% of firms expect higher costs due to the Make Work Pay reforms, with 44% anticipating a major impact.
Make UK has lowered its growth projections for the manufacturing sector. It now expects the sector to contract by 0.2% in 2024, with a modest recovery of 0.7% growth in 2025.
Rising costs from the upcoming Budget, particularly changes to National Insurance Contributions, are expected to add pressure on businesses.
Oil prices edge lower amid Fed meeting uncertainty
Oil prices edged lower on Monday, driven by cautious market sentiment ahead of the Federal Reserve meeting and renewed scrutiny of Chinese economic data for insights into energy demand.
futures for February dropped 0.3% to $74.30 per barrel, while West Texas Intermediate (WTI) crude dropped 1% to $70.58 per barrel as of 3:10 ET.
