European bonds and stocks hold gains; ECB meeting in focus as Lagarde confirms early exit
TLT•European stocks and government bonds rose ahead of the ECB meeting, where markets expect rates to hold, while President Christine Lagarde confirmed she will leave in February. Alphabet shares fell 10.5% in premarket trading after results raised concerns about AI spending.
1. Markets await ECB decision
Europe’s STOXX 600 rose 0.5% on Thursday as euro zone bond yields edged lower and traders awaited the European Central Bank’s next move. RBC expects the ECB to hold rates at 2.50%, followed by a final hike to 2.75% in December, while money markets are pricing in as many as three additional increases.
2. Lagarde confirms departure
ECB President Christine Lagarde confirmed she will leave her post in February. Her departure would allow French President Emmanuel Macron and other EU leaders to fill the position before France’s spring presidential election.
3. Alphabet weighs on futures
Nasdaq futures fell 1% as Alphabet shares dropped 10.5% in premarket trading after disappointing results in its core search business and an acceleration in cash spending on AI. Amazon and Intel were due to report earnings after US markets closed.
