Lights on in skyscrapers and commercial buildings on the skyline of the City of London, UK, on Tuesday, Nov. 18, 2025. U.K. business chiefs urged Chancellor of the Exchequer Rachel Reeves to ease energy costs and avoid raising the tax burden on corporate Britain as she prepares this year’s budget.
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LONDON — European stocks opened higher across the spectrum as expectations rise that the U.S. Federal Reserve will cut interest rates in December.
The pan-European Stoxx 600 was 0.3% higher by 8:34 a.m. in London (3:34 a.m. ET), with most sectors and major regional bourses in positive territory.
Regional indexes are following their counterparts on Wall Street and in the Asia-Pacific region higher amid expectations that the Fed will cut when it next meets on Dec. 9 and 10.
Markets are pricing in almost an 85% chance of a quarter percentage point cut by the central bank, according to the CME FedWatch tool. New York Fed President John Williams also said on Friday that there was room to lower rates “in the near term.”
Global markets also got a boost after U.S. Treasury Secretary Scott Bessent told CNBC on Tuesday that there was a “very good chance” that Trump could name a new Fed chair before Christmas.
While he said he was interviewing candidates, expectations are shifting toward White House National Economic Council Director Kevin Hassett, after Bloomberg reported he had emerged as a frontrunner for the job. Hassett is viewed as someone more likely to push for lower rates.
In the U.K., all eyes are on the Autumn Budget on Wednesday with Chancellor Rachel Reeves set to unveil her spending and taxation plans for the year ahead. There are widespread expectations that the finance minister will announce a raft of tax hikes as she tries to stick to self-imposed rules on spending and borrowing, and has a fiscal black hole to fill as a result.
U.K. government borrowing costs ticked higher ahead of Reeves’ policy updates, with the yield on the benchmark 10-year gilt adding 2 basis points in early morning trade.
U.K. 10 year gilt
The British pound, meanwhile, gained 0.1% against the U.S. dollar and moved marginally lower versus the euro.
Follow CNBC’s Autumn Budget live blog throughout the day for all the latest news, comment and announcements. Chancellor Reeves will deliver her budget statement around 12.30 p.m. London time.
— CNBC’s Pia Singh contributed to this market report.
