European stocks rebound as rate cut bets and Ukraine talks lift sentiment

"European equities opened higher on Wednesday, extending the rebound triggered by renewed hopes of US monetary easing and signs of diplomatic progress in the Ukraine conflict. Softer US data yesterday has strengthened expectations for a Federal Reserve rate cut in December, helping to ease pressure on global risk assets. Meanwhile, Ukrainian President Volodymyr Zelenskiy's endorsement of a US-backed peace framework added a layer of geopolitical relief."

"In Germany, IMF projections offered a mixed picture, which could limit local stocks' upside. The Fund acknowledged the country's recent fiscal reform as a foundation for recovery but warned that structural constraints could cap long-term growth. While real GDP is expected to rise gradually to 1.5% by 2027, public debt is also projected to climb, albeit remaining the lowest among G7 peers. Sector-wise, autos traded under pressure amid reports of job cuts linked to sluggish consumer demand."

European equities opened higher on renewed hopes of US monetary easing and signs of diplomatic progress in Ukraine. Softer US data increased expectations for a Federal Reserve rate cut in December and eased pressure on global risk assets. Ukrainian President Volodymyr Zelenskiy's endorsement of a US-backed peace framework added geopolitical relief that supported market sentiment. IMF projections for Germany were mixed, citing recent fiscal reform as a recovery foundation but warning that structural constraints could limit long-term growth. Real GDP is expected to reach 1.5% by 2027 while public debt is projected to climb; autos faced pressure amid job-cut reports and Airbus gained as France and Germany pushed to align partners on the EUR 100 billion Future Combat Air System.

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