European Traders Face Market Turbulence Amid Fed Speculation

European traders are bracing for potential market volatility as speculation mounts over a possible half-point rate cut by the Federal Reserve. Reports have suggested a close decision, influencing global markets. Equities showed mixed reactions, with gold reaching a new peak. Euro region CPI data also came into focus.

European traders are preparing for a day of market turbulence as speculation intensifies over a potential half-point cut in the Federal Reserve's interest rate decision next week. This follows separate reports suggesting the choice remains finely balanced.

Former New York Fed President Bill Dudley's comments on the strong case for a 50 bps reduction have influenced market reactions, weakening the dollar and driving down two-year Treasury yields. Asian markets showed mixed responses: the Hang Seng rose, while the Nikkei and South Korean markets declined ahead of long holidays.

On the docket in Europe are CPI prints from France and Greece, and eurozone industrial production data. With central banks in blackout periods and no significant speeches pending, traders are primarily focused on Fed developments.

(With inputs from agencies.)