Skyscrapers and commercial buildings on the skyline of the city of London, England, are illuminated on Tuesday, November 18, 2025. British business leaders have called on Chancellor of the Exchequer Rachel Reeves to ease energy costs and avoid an increase in the tax burden for British businesses as she prepares this year’s budget.
Bloomberg | Bloomberg | Getty Images
European stocks opened higher on Friday, with the US Federal Reserve’s policy decision next week in focus.
Immediately after the opening bell rang, the pan-European Stocks 600 rose 0.3%, with most sectors and major regional stock exchanges in positive territory.
Investors are awaiting the results of next week’s Federal Reserve Board’s Federal Open Market Committee. According to CME’s FedWatch tool, money markets are pricing in an 87.1% chance that policymakers will cut key interest rates, with expectations for a quarter-point rate cut rising over the past two weeks.
Friday will see the delayed release of September statistics on U.S. consumer spending, the University of Michigan’s December Consumer Survey and the Consumer Expenditure Index, which the Fed uses to inform policy decisions. The central bank is also focused on a softening labor market, but Thursday’s data showed U.S. jobless claims fell by 27,000 in the week ending Nov. 29 from the previous week, lower than expected.
The focus of monetary policy will return to Europe next week, with the Bank of England, European Central Bank, Sweden’s Riksbank and Norway’s Norgesbank all set to announce their own interest rate decisions on December 18th.
European investors continue to monitor developments in US-led negotiations to end the war in Ukraine.
Russian President Vladimir Putin, who met with a US delegation in Moscow earlier this week, is currently in India on a state visit. CNBC reported Thursday that European Union officials are considering ways to use frozen Russian assets to provide further aid to Kiev, but Russian Security Council Deputy Chairman Dmitry Medvedev said the move amounted to justifying war.
In an interview with India Today, President Putin warned that if Ukrainian troops did not withdraw, Russia would take control of eastern Ukraine’s Donbas region by force.
In corporate news, swiss reinsurance company Shares fell 5.6% in early trading after the global reinsurer announced its 2026 financial targets. The company said it is targeting net income of $4.5 billion in 2025, slightly above its minimum target of $4.4 billion. The company also said its goals include growing annual dividends per share by more than 7% over the next two years.
At the other end of the Stoxx 600, British online grocery company Ocado soared 10.2% after it was reported that US partner Kroger had agreed to pay the company $350 million in compensation after it canceled plans for a US Ocado distribution center.
Data expected to be released from Europe on Friday will include figures on the European Union’s GDP growth rate, as well as statistics on German factory orders, France’s trade balance and Italy’s retail sales.
