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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Europe-listed shares opened higher on Friday, with next week’s Federal Reserve policy decision in focus.
Shortly after the opening bell, the pan-European Stoxx 600 was 0.3% higher, with most sectors and major regional bourses in positive territory.
Investors are awaiting the outcome of the Federal Reserve’s Federal Open Market Committee meeting next week. Expectations of a quarter-point cut have surged in the past two weeks, with money markets now pricing in an 87.1% chance of policymakers trimming their key interest rate, according to the CME’s FedWatch tool.
Friday will bring delayed September data on U.S. consumer spending, the University of Michigan’s December consumer survey and the personal consumption expenditures index, which the Fed uses to inform its policy decisions. The central bank is also focused on a softening labor market – but data on Thursday showed U.S. jobless claims in the week to Nov. 29 fell 27,000 from the previous week and came in below estimates.
Monetary policy focus will turn back to Europe the following week, with the Bank of England, the European Central Bank, Sweden’s Riksbank and Norway’s Norges Bank all scheduled to publish their own interest rate decisions on Dec. 18.
Investors in Europe continue to monitor developments in U.S.-led negotiations to end the war in Ukraine.
Russian President Vladimir Putin, who held talks with a U.S. delegation in Moscow earlier this week, is currently on a state visit to India. CNBC reported on Thursday that European Union officials were looking at ways to use frozen Russian assets to provide further support to Kyiv – a move that Dmitry Medvedev, deputy chairman of Russia’s Security Council, said would be tantamount to an act justifying war.
In an interview with India Today, Putin warned Russia will seize Ukraine’s eastern Donbas region by force if Ukrainian troops do not withdraw.
In corporate news, shares of Swiss Re fell 5.6% in early trade after the global reinsurer announced its 2026 financial targets. The company said it was targeting net profit of $4.5 billion, slightly higher than the minimum $4.4 billion it’s targeting in 2025. It also said its targets include annual dividend per share growth of 7% or more over the next two years.
At the other end of the Stoxx 600, U.K. online grocery firm Ocado jumped 10.2% after U.S. partner Kroger reportedly agreed to pay $350 million in compensation to the company after scrapping plans for an Ocado distribution center in America.
Data due out of Europe on Friday includes a print on European Union GDP growth, as well as figures on German factory orders, France’s balance of trade and Italian retail sales.
