Europe Expected to Open in the Green Ahead of Data Releases Amid Fed Decision and Tech Tensions

According to initial indications, the CAC 40 in Paris is expected to rise by 0.44% at the opening. Futures contracts also signal a 0.6% increase for the DAX in Frankfurt, a 0.47% rise for the FTSE in London, and a 0.61% gain for the EuroStoxx 50. Investors are looking forward to a series of major European indicators this Friday, following a week in which markets had to quickly adjust their positions. On Wednesday, the Federal Reserve lowered interest rates but adopted a less optimistic outlook than anticipated, contributing to increased caution among traders. Simultaneously, the market was affected by renewed concerns regarding artificial intelligence, a sector whose valuations and expectations continue to raise questions, impacting overall market sentiment. In the oil market, WTI futures stabilized around $58 per barrel on Friday but are still on track for a weekly decline of over 3%, amid expectations of a global surplus. The International Energy Agency confirmed its forecasts for a record oversupply, slightly below its previous estimate, while noting that global stocks have reached a four-year high. Additionally, OPEC maintained its 2026 outlook for supply and demand, suggesting a more balanced market. Geopolitical tensions also played a role earlier in the week, particularly after the U.S. intercepted a sanctioned Venezuelan oil tanker, an action described as "piracy" by Caracas. Gold prices hovered around $4,270 per ounce on Friday, remaining close to a seven-week high and heading for a weekly gain. This momentum is supported by expectations of further U.S. monetary easing. Signs of a cooling U.S. labor market have indeed bolstered expectations for two rate cuts in 2026. Jobless claims for the week of December 6 rose more than expected, reaching their highest level in over two months. These data were released after the Fed implemented its third 25 basis point cut this year, adopting a tone less "hawkish" than markets had anticipated. Chairman Jerome Powell indicated that further rate hikes are now "essentially excluded," prompting traders to factor in two cuts in 2026, although the central bank's official projections only foresee one. Meanwhile, the Fed announced it would purchase approximately $40 billion in short-term Treasury bills to ease tensions in the money market, a move likely to cap short-term yields and support precious metals.