European Equities Tick Higher as Investors Brace for Central Bank Decisions

Written by Sandra Leggero

Sandra Leggero has a background in financial markets, having spent more than 9 years in commodities trading for several European and Asian companies. She holds a degree in Economics from the University of Pavia and specializes in emerging markets.

, | Updated: December 15, 2025

Key Moments

Major European equity benchmarks traded modestly higher. Germany’s DAX and France’s CAC 40 each rose 0.4%, while the U.K.’s FTSE 100 gained 0.5%.
The European Central Bank and Bank of England will deliver policy decisions this week. Several other central banks and key U.S. economic releases are also on the agenda.
Oil prices inched up after last week’s 4% slide. Meanwhile, renewed concerns over China’s growth and property sector weighed on sentiment.

European Markets Open Firmer

European stocks traded slightly higher on Monday. Investors entered the last full trading week of the year, a period packed with central bank meetings and U.S. economic data releases.

At 03:05 ET (08:05 GMT), Germany’s DAX index was up 0.4%, France’s CAC 40 added 0.4%, and the U.K.’s FTSE 100 advanced 0.5%.

Central Banks Dominate the Agenda

Global risk sentiment drew support from last week’s U.S. Federal Reserve rate cut of 25 bps. Nevertheless, Monday’s European gains remained modest. Markets faced a week full of policy risks and macro updates. In addition, worries about stresses in China’s real estate sector persisted.

ECB Outlook and Growth Surprise

The European Central Bank will meet on Thursday. It is widely expected to keep its key rate at 2% for the fourth consecutive session. Investors will watch for any signals that a 2026 rate increase could be considered. Recent data showed third-quarter GDP growth of 0.3%, exceeding the ECB’s September projections.

Bank of England Decision in Focus

The Bank of England’s upcoming policy decision appears less clear-cut. Governor Andrew Bailey may tilt the vote to 5-4 in favor of reducing the benchmark rate to 3.75% from 4.0%.

Other Nordic Central Banks Set to Meet

The Riksbank and Norges Bank are also scheduled to deliver their final 2025 policy decisions this week.

Heavy U.S. Data Calendar

This week includes postponed U.S. economic releases, such as October retail sales and the November nonfarm payrolls report. During the recent FOMC press conference, Fed Chair Jerome Powell emphasized that upcoming interest rate moves will depend on economic data. As a result, these indicators carry heightened significance for markets.

European and Chinese Data in the Spotlight

Investors in Europe will monitor December PMI figures and consumer inflation data for both the euro area and the U.K.

Earlier, Chinese data showed weaker-than-expected industrial production and retail sales for October. Fixed asset investment contracted sharply, highlighting slower business spending. These readings intensified concerns about a slowdown in the world’s second-largest economy. Consequently, expectations rose that Beijing may provide additional economic support.

Fears over a potential debt crisis in China’s property sector persisted. State-backed developer China Vanke reportedly failed to secure debtholder approval to postpone payments on an onshore bond due December 15.

Corporate Highlights in Europe

Even as most European earnings season has concluded, some company developments affected stock movements. Sanofi (EPA:SASY) drew attention after its experimental therapy tolebrutinib failed to achieve the primary endpoint in a Phase 3 study for primary progressive multiple sclerosis.

Separately, Hikma Pharmaceuticals (LON:HIK) announced that Riad Mishlawi resigned as CEO and from the Board of Directors by mutual agreement.

Energy Markets: Oil Prices Recover Modestly

Crude oil prices edged higher on Monday, partially recovering from last week’s sharp declines. Traders weighed potential supply disruptions from rising U.S.-Venezuela tensions against the possibility of a Russia-Ukraine peace agreement.