European Stock Markets Decline Amid Inflation and Interest Rate Outlook
On December 16, European stock markets displayed negative trends as the process of inflation reduction in the Eurozone progresses. European Central Bank President Christine Lagarde is close to declaring victory against inflation, suggesting further interest rate cuts. Lagarde highlighted the sluggish economic recovery and updated forecasts show lower growth rates for the Euro area. Meanwhile, the U.S. Federal Reserve’s rate decision is anticipated, with analysts predicting a potential 25-basis point cut. Additionally, international oil prices and bond yields are showing downward trends.