Global stocks: Optimism about a rate cut collides with fears of a sharp correction
Traders in the stock market are awaiting a number of important signals during the month of December, starting with the profits of artificial intelligence companies, through ensuring the stability of The American stock market, ending with the announcement of interest rates in America, Britain, and Europe.
Interest cut raises morale
Global stocks rebounded in the last week of November, compensating for their largest decline since April, supported by a firm belief that the Federal Reserve (the US central bank) will cut interest rates in December. However, some of the leading stocks in the market remained volatile.
The index is expected to end "Standard & Poor’s 500" In 2025, with gains amounting to about 16%, as December is classified as the third best performing month for the index, with an average gain of 1.43% since 1950, according to the stock traders’ calendar.
In Europe, the index managed "Stokes 600" The European Central Bank managed to maintain its gains, making November the fifth positive month in a row, and European stocks are expected to maintain this momentum, although the markets do not see any chance of further interest cuts by the European Central Bank.
In Britain, traders in the British market may find a reason to celebrate this year, as markets expect 90% odds that the Bank of England (the central bank) will cut interest rates in December.
Anticipated risks
Despite the optimism behind the strong performance And expectations of a rate cut, there are other forces pushing investors to be cautious, including ongoing warnings about the pace of spending on artificial intelligence infrastructure, and the continuing decline in the digital currency market.
The European Central Bank warned that American technologyis overrated, noting that "Sharp, interconnected price corrections" It is a major risk for stocks that rely on artificial intelligence.
Form Cryptocurrencies are also a drag in the last month of the year. Analysts expect Bitcoin to continue to decline as new investors and ETFs dump the digital asset.
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