Europe midday: Shares slip into red in cautious trade ahead of Fed
By Frank Prenesti
Date: Tuesday 09 Dec 2025
(Sharecast News) - European shares surrendered morning gains to be flat at midday on Tuesday as attention turned to the US Federal Reserve's monetary policy meeting due to start later in the day.
The pan-regional Stoxx 600 index was down 0.08% to 577.9 at 1151 GMT. Germany's DAX gained 0.24%, while Britain's FTSE 100 rose 0.13% and France's CAC 40 slid 0.52%.
Investors widely expect the Fed to cut its key interest rate by 25 basis points at its final two-day meeting of the year, with the odds of a reduction priced in at 87% chance of a quarter-point cut. Earlier in the day Australia's central bank held rates steady and warned that increases could be on the horizon if persistent inflation wasn't stymied.
"Concerns around the incessant rise in borrowing costs does create a worrying backdrop to the likely 25-basis point cut tomorrow, highlighting fears around the potential implications for global debt levels as the growing reliance on short-term debt means any rise in yields puts additional stress on the system," said Marketscope analyst Johsua Mahony.
"Notably, the main mover in the bond market today has been the Australian treasuries, coming off the back of a Reserve Bank of Australia pause which came alongside a warning that price pressures were building as demand runs stronger."
"Somewhat ominously, the US experience of higher inflation and a weaker jobs market appear to be emerging in Australia, highlighting the fear that stagnation becomes more prominent across the globe."
In regional economic news, German exports rose in October against expectations of a fall as trade with European Union partners provided a boost, according to official data published on Tuesday.
Exports rose by 0.1% month on month, federal statistics office said. Economists had been expecting a 0.5% fall. Imports were down 1.2% on a calendar and seasonally adjusted basis.
The foreign trade balance showed a surplus of €16.9bn in October, up from €15.3bn in the previous month and €14.6bn a year ago.
Exports to EU countries rose by 2.7% month on month, while exports of goods to countries outside the 27-member bloc were down 3.3%.
On the equities from, shares in Thyssenkrupp tumbled as the German conglomerate said it expected to swing to a net loss of up to €800m next year, citing restructuring provisions at its steel unit.
Defence stocks were on the march again on a report that German lawmakers are set to approve a record €52bn in procurement contracts next week.
Rheinmetall, Renk and Hensoldt were all higher on the news.
British American Tobacco fell after the cigarette maker said it expects 2026 numbers to come in at the lower end of its mid-term targets.
Renewable energy companies Nordex, Vestas and Oersted were all higher US federal judge rejected President Donald Trump's ban on new wind energy projects.
Reporting by Frank Prenesti for Sharecast.com
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