European stocks opened the market lower on Wednesday as traders focus on the Federal Reserve’s (Fed) upcoming meeting scheduled for December 17-18, with speculation that the Central bank would begin to taper its stimulus program. Meanwhile in the US, policymakers concluded a deal to reduce automatic budget cuts to avoid another government shutdown.
The pan-European Euro Stoxx 50 opened 0.21% lower at 2,959.50, while the German DAX edged 0.23% lower to 9,093.80 at the time of writing. At the same time, the British FTSE 100 declined 0.17 to 6,512.30, while the French CAC 40 rose 0.03% higher to 4,092.30.
Germany’s consumer prices climbed 0.2% higher in November, meeting in line with estimates, compared to the 0.2% drop recorded in the previous month; the final reports from the Federal Statistical Office confirmed.
Meanwhile in France, the non-farm payrolls showed a drop of 0.1% in the third quarter, meeting flash estimates, reports from the National Institute for Statistics and Economic confirmed.
The government of Italy will auction Treasury bills maturing in 12 months, with a maximum target of 5.5 billion euros.
Greece unemployment report for September is expected to show that the country’s unemployment rate remains the highest among the rest of the eurozone nations.
The Managing Director of the International Monetary Fund, Christine Lagarde said the high rate of youth unemployment could lengthen the eurozone’s economic crises.
“Can a crisis really be over when 12% of the labor force is without a job? When unemployment among the youth is in very high double digits, reaching more than 50% in Greece and Spain? And when there is no sign that it is becoming easier for people to pay down their debts?” Lagarde stated.
European Stocks – US Budget Agreement
In the US, budget policymakers concluded a deal to reduce automatic budget cuts and set spending levels for the next two years.
“While modest in scale, this agreement represents a positive step forward by replacing one-time spending cuts with permanent reforms to mandatory spending programs that will produce real, lasting savings,” House Speaker John Boehner said.
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