The FTSE 100 (^FTSE) increased, while European and US stocks showed mixed results on Tuesday afternoon as investors focus on the upcoming Federal Reserve policy meeting starting today.
The central bank will reveal its last policy decision of the year on Wednesday. It is widely expected that there will be a quarter-point rate cut, reflecting similar reductions made in September and October, with current market pricing indicating 89% odds.
Investors are keenly observing the Fed for insights regarding potential easing in 2026, although the outlook has become uncertain following December’s “hawkish cut“.
Kevin Hassett, an economic advisor in the White House and a potential frontrunner for the next Fed chair, emphasized the need for caution, stating that making plans for the next six months is unwise. In a Tuesday interview, US President Donald Trump expressed interest in appointing a chair who would quickly implement rate cuts.
In the UK, it appears that spending during Black Friday sales has declined this year, with the British Retail Consortium (BRC) attributing the downturn to inclement weather and pre-budget concerns. Foot traffic fell 0.8% in November compared to the prior year, continuing a downward trend for the seventh month in a row.
Helen Dickinson, CEO of BRC, noted that “Storm Claudia led many consumers to search online for Black Friday deals, prompting some to avoid physical stores.” Data from Barclays (BARC.L) also indicated a 1.1% year-on-year drop in card spending for November—the steepest decline since February 2021.
Stock Highlights: Unilever (ULVR.L) led the gainers in the FTSE, surging over 15% after its ice cream brand, Magnum, concluded its stock market spinoff. The FTSE 100 overall rose by 0.1%.
