2025.12.0808:35:39UTC+00European Stocks Dip Ahead of Packed Central Bank Week

On Monday, both the STOXX 50 and STOXX 600 indices experienced a decline of 0.2% as investors prepared for a critical week filled with significant central bank decisions globally, including a key meeting by the Federal Reserve. It is widely anticipated that the Fed will announce a 25-basis-point rate cut. However, investor focus is on the updated projections from the Federal Open Market Committee (FOMC), given the ongoing uncertainty surrounding its policy direction through 2026. Concurrently, European Central Bank official Isabel Schnabel expressed confidence in investor expectations that the ECB’s subsequent move may involve a rate hike, contributing to the cautious sentiment across European markets. In the corporate sector, Unilever saw a nearly 4% drop following the completion of the long-awaited spinoff of the Magnum Ice Cream Company, which officially separated from Unilever today. On the other hand, Ageas experienced a gain of over 2% after it agreed to acquire the remaining 25% stake in AG Insurance from BNP Paribas for $1.9 billion, thereby obtaining full ownership. TKMS experienced a slight increase of about 0.5% despite providing a subdued earnings outlook for 2026, while UBS rose by 0.5% amid reports of potential plans to cut an additional 10,000 jobs by 2027.