"Mainland European equity markets are heading lower in a day that will be dominated by monetary policy out of the Americas. Notably, the defence sector has particularly suffered this morning, with the likes of BAE Systems, Rheinmetall, and Thales lose traction as the end of the Russia-Ukraine war comes into sight. Unfortunately for Europe, the peace agreement appears to be a deal Trump has formed with Russia behind the back of European leaders whom the President has labelled "weak"."
"The latest Trump strategy document laid out a plan to focus on the Western Hemisphere, seemingly leaving allies throughout Europe and Asia to fend for themselves. Thus, while Trumps deal may end the war in Ukraine, Europe will likely have to build up a greater degree of self-reliance which undoubtedly means increased defence spending in the years ahead."
"Today sees traders and investors focus their attention to the FOMC announcement that will likely bring a third and final 25-basis point cut of 2025. So far we have seen 150-basis points worth of rate cuts from the Fed, and many within the committee will perceive that today's expected easing should precede a period of patience. After-all, for all the concerns around the job market, unemployment remains low and inflation continues to cause consternation for many."
Mainland European equity markets are heading lower as monetary policy from the Americas dominates. The defence sector has suffered, with BAE Systems, Rheinmetall, and Thales losing traction as the Russia-Ukraine war edges toward an end. A perceived peace agreement reportedly formed by Trump with Russia sidelines European leaders and could force Europe toward greater self-reliance and increased defence spending. Traders focus on the FOMC announcement expected to bring a third 25-basis-point cut of 2025. The Fed has already cut 150 basis points this year, unemployment remains low, inflation remains a concern, and markets price a 90% chance of easing today.
Read at London Business News | Londonlovesbusiness.com
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