European equities advanced on Thursday, building on recent momentum as investors looked ahead to an anticipated Federal Reserve rate cut next week. Attention in the region is also turning to upcoming eurozone retail sales figures.

By 08:05 GMT, Germany’s DAX was up 0.8%, France’s CAC 40 added 0.4%, and London’s FTSE 100 edged higher by 0.1%.

Markets buoyed by expectations of Fed easing

Stocks across Europe traded higher as confidence firmed that the U.S. central bank will move forward with monetary easing next week, a sentiment fueled by a run of softer U.S. data.

The latest ADP report pointed to slower job creation, while the ISM services reading signaled cooling conditions in the services sector. Investors are now awaiting Friday’s PCE inflation release — the week’s key data point — which could further shape expectations for the Fed.

According to the CME FedWatch tool, markets are currently pricing in close to a 90% probability of a 25-basis-point cut on Dec. 10.

Eurozone retail numbers ahead

In Europe, fresh construction data for the single-currency bloc will be published later in the day, but the spotlight will be on October’s retail sales report for insight into consumer strength.

Economists expect retail sales to be unchanged on the month — a slight improvement after September’s 0.1% decline.

The European Central Bank meets later this month and is widely expected to keep rates unchanged at its final meeting of the year. ECB President Christine Lagarde said Wednesday that core inflation indicators are consistent with the bank’s target and that price pressures should remain close to 2% in the coming months. She added that new staff projections due Dec. 18 will offer more clarity on growth and inflation trends.

Corporate movers: Rio Tinto, SSP Group, Frasers, Aurubis

Rio Tinto (LSE:RIO) raised its 2025 copper output forecast and lowered its cost guidance as it unveiled a revamped operational structure during its 2025 Capital Markets Day.

SSP Group (LSE:SSPG), which operates food and beverage outlets in travel hubs worldwide, reported steady full-year results, with revenue up 6% and underlying operating profit rising 8.4%.

Frasers Group (LSE:FRAS) kept its full-year earnings outlook of £550 million–£600 million intact, despite a 2.8% drop in half-year adjusted profit. CEO Michael Murray cautioned that “excess inventory continues to weigh on the industry, leading to increased promotional activity.”

Aurubis (TG:NDA) said its net cash flow soared nearly 30% in 2024–25, reaching a three-year high, and proposed a higher dividend payout.

Oil prices climb on renewed Russian supply risks

Crude prices rose on Thursday after fresh Ukrainian strikes on Russian energy infrastructure reignited concerns about global supply, compounded by stalled diplomatic efforts to resolve the conflict in Ukraine.

Brent crude was up 0.4% at $62.92 a barrel, while U.S. WTI gained 0.6% to $59.29.

A Reuters report on Wednesday said Ukrainian forces targeted the Druzhba pipeline in Russia’s Tambov region, intensifying worries about disruptions to Russian oil flows. Meanwhile, high-level talks between U.S. and Russian officials ended without progress earlier this week.

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