Caution in Europe Ahead of the Fed and Other Central Banks

According to initial indications, the CAC 40 in Paris is expected to rise by 0.17% at the opening. The DAX in Frankfurt may decline by 0.02%, while the FTSE 100 in London is projected to drop by 0.05%. The EuroStoxx 50 index is anticipated to decrease by 0.02%, and the Stoxx 600 is expected to fall by 0.09%. Ahead of the Federal Reserve's decision on Wednesday, traders are assessing the probability of a 25 basis point rate cut at 87.4%, according to CME's FedWatch barometer. Key uncertainties revolve around the divisions among FOMC members, comments from Fed Chair Jerome Powell, and the bank's decisions for the upcoming year.