European markets moved higher at the start of the session, as regional investors await this year’s final monetary policy decision from the European Central Bank (ECB).
The pan-European Stoxx 600 index was up 0.08% by 9:00 a.m. London time, with all major bourses and most sectors trading in the green. Oil and gas stocks added 0.92%, while media stocks dipped 0.28%.
The central bank is heading for its final interest rate cut of the year on Thursday, with economists expecting a 25-basis-point rate cut rather than the “jumbo” 50-basis-point move that was previously expected. The ECB is also due to release its quarterly macroeconomic projections on growth and inflation.
The Swiss National Bank also announced latest monetary policy decision Thursday, cutting rates by 50 basis points.
It comes as traders continue to digest the latest inflation data out of the U.S. The figures showed that consumer prices rose 0.3% month on month and grew at a 12-month rate of 2.7%, in line with economists’ estimates.
The producer price index report is due Thursday. The prints mark the last major economic data releases before the Federal Reserve’s policy meeting next week.
Traders are still betting that the Fed will cut rates; Fed funds futures are pricing in a more-than 98% likelihood that the central bank lowers rates at that meeting, according to CME’s FedWatch Tool.
Overnight, Asia-Pacific markets were mostly higher following post-inflation data gains on Wall Street that saw the Nasdaq Composite top the 20,000 threshold, posting an all-time high and a closing record. U.S. stock futures slid Thursday morning.