European Equities Tick Higher as Investors Await Lagarde and Fed Decisions

Key Moments

Major eurozone benchmarks traded mixed, with Germany’s DAX up 0.4%, France’s CAC 40 up 0.1%, and the U.K.’s FTSE 100 down 0.1% at 03:05 ET (08:05 GMT).
Inditex (BME:ITX) posted a 10.6% increase in revenue over the four weeks to December 1, underscoring relative strength despite softer consumer sentiment in fashion retail.
Brent crude futures rose 0.5% to $62.74 per barrel and U.S. WTI gained 0.5% to $58.94, with markets monitoring Ukraine-related developments and U.S. inventory data.

European Markets Open Mostly Higher

European stock markets traded mostly higher on Wednesday. Investors were evaluating fresh regional data. They also positioned ahead of remarks from European Central Bank President Christine Lagarde, expected later in the session.

At 03:05 ET (08:05 GMT), Germany’s DAX index advanced 0.4%, France’s CAC 40 added 0.1%, while the U.K.’s FTSE 100 slipped 0.1%.

Global Risk Sentiment and Fed Expectations

European equities benefited from a positive lead from Asian markets. In Asia, investors assessed growing expectations for a U.S. Federal Reserve interest rate cut next week. Consequently, sentiment in Europe improved.

U.S. stock indices finished modestly higher in the previous session, with technology names driving the move.

December has historically supported equities. Furthermore, further gains are possible. Markets are looking ahead to the upcoming Federal Reserve meeting. A 25-basis-point rate cut is now 85% priced in.

Focus on Lagarde and Eurozone Data

In Europe, attention is turning to an upcoming speech by ECB President Christine Lagarde. Market participants are expected to scrutinize her comments for any indications regarding the future path of interest rates.

Recent data showed eurozone inflation rose to 2.2% last month, up from 2.1% in October. This is a small increase. Therefore, inflation remains close to the ECB’s 2% target.

ECB policymaker Joachim Nagel, who heads the Bundesbank, told German magazine Stern on Tuesday, “We have practically achieved (our goal), and the inflation rate will continue to fluctuate around this value in the near future,”.

Investors are also awaiting the release of the November eurozone composite purchasing managers’ indices later in the session, which are anticipated to signal a gradually improving economic backdrop.

Corporate Highlights: Retail, Fashion, and Aerospace

Company-specific news contributed to stock-specific moves across the region.

Company	Exchange / Ticker	Key Update
Inditex	BME:ITX	Revenue rose 10.6% in the four weeks to December 1, signaling resilience despite weaker consumer sentiment affecting many fashion retailers.
Hugo Boss	ETR:BOSSn	Targets an operating profit margin of around 12% over the medium-to-long term as part of a strategic overhaul.
Airbus	EPA:AIR	Cut its 2025 commercial aircraft delivery goal to around 790 jets, citing a supplier quality issue on fuselage panels affecting its A320 line.

Oil Prices Firm on Geopolitical and Supply Concerns

Crude prices traded slightly higher Wednesday as prospects for an immediate resolution to the war in Ukraine appeared slim, preserving a key supply risk for the market.

Brent futures climbed 0.5% to $62.74 per barrel, while U.S. West Texas Intermediate (WTI) futures advanced 0.5% to $58.94 per barrel.

Russia and the United States failed to reach a peace agreement on Ukraine. This followed a long meeting late Tuesday between Russian President Vladimir Putin and U.S. envoys Steve Witkoff and Jared Kushner.

Oil traders are closely watching the discussions. Any agreement that provides sanctions relief on Russian companies could unlock restricted crude flows. Therefore, markets remain alert to potential changes.

At the same time, signs of rising U.S. supply added to worries about a potential oversupply. The American Petroleum Institute reported on Tuesday that U.S. crude inventories increased by 2.48 million barrels in the week ended November 28.

Market participants now await official stockpile figures from the U.S. Energy Information Administration, due later on Wednesday.