Source: Sharecast
The pan-regional Stoxx 600 index was up 0.08% in early deals.
Sweden’s Riksbank left its policy rate unchanged at 1.75% and indicated that “the rate is expected to remain at this level for some time to come”.
“The prospects for the Swedish economy are looking brighter. Although it will take time before economic activity returns to normal, the recovery is under way. At the same time, inflation has approached 2%,” policy makers said in a statement.
However, it added that the risk picture abroad is “still marked by geopolitical conflicts, uncertainty regarding US foreign and trade policy, high asset valuations in financial markets and weak public finances in several countries”.
“In Sweden, there is also uncertainty around households’ consumption behaviour and the effects that next year’s more expansionary fiscal policy will have.”
Rate decisions are also expected from the European Central Bank, the Bank of England and Norway’s Norges Bank. The BoE is expected to cut by 25 basis points on the back of cooling inflation and a tougher jobs market.
"Risk sentiment is stabilising as we move towards the end of a week that is packed with policy risks and three central bank meetings. The ECB and the BOE announce their latest policy decisions today, while the Bank of Japan is expected to hike rates tomorrow," said XTB research director Kathleen Brooks.
"The Bank of England is expected to cut rates at midday, there is a 97% chance of a 25bp cut in rates to 3.75%, after recent weak labour market and CPI data. The UK economy has not registered growth since June, and this is starting to tilt the BoE to a more dovish stance."
"The Governor, Andrew Bailey, is expected to vote for a cut later today. Beyond this, the market expects just over one rate cut in 2026, however, it all depends on the vote split."
In equity news, Aeroports de Paris fell after Jefferies has downgraded the stock to 'hold' from 'buy', citing rising uncertainty surrounding the company’s proposed industrial plan and its upcoming capital expenditures.
Reporting by Frank Prenesti for Sharecast.com