The market expects a “green Christmas” thanks to the possibility of widespread interest rate cuts.

VTV.vn - Investors expect a "green Christmas" as the probability of interest rate cuts in the US and Europe increases sharply, although the market still faces risks of high valuations and year-end volatility.

Traders at the New York Stock Exchange, USA. Photo: THX/TTXVN

Global stock markets entered December with a cautious mood after a volatile November. This is also a time of many important events for the financial world. This December, there are 4 policy meetings of 4 major central banks: the US Federal Reserve (FED), the European Central Bank (ECB), the Bank of England (BOE) and the Swiss National Bank (SNB).

The impact of these meetings on the stock market is huge. So investors are asking: Will the market get a Christmas gift of massive stock price increases, or a gloomy note?

Market data shows that the UK's FTSE 100 index has risen 24 times in the last month of the year over the past 30 years. Expectations for a rise are even stronger as the market predicts a 90% chance that the Bank of England (BOE) will cut interest rates after the new budget is judged not to add to inflationary pressures.

In the US, the FedWatch tool shows an 83% chance the Federal Reserve will cut interest rates at its December meeting, which could provide a boost to global stocks.

However, regulators continue to warn that the technology’s valuation is too high, leading to a sharp correction. Bitcoin is also facing selling pressure ahead of the block reward halving cycle, making December a volatile period before 2026.

In the trading session on the night of December 1 (Vietnam time), US stocks started the new trading week with a slight decrease. The decline occurred in the context of newly released data showing that tariffs continue to negatively affect the US manufacturing sector.

At the close, the Dow Jones Industrial Average fell more than 400 points, while the S&P 500 and Nasdaq also ended their five-session winning streak. Investors were generally cautious after the Institute for Supply Management (ISM) released a report showing that the US manufacturing Purchasing Managers' Index (PMI) continued to shrink for the ninth consecutive month in November, reflecting a decline in orders and high costs due to the impact of tariffs. The sharp decline in the cryptocurrency market also affected investor sentiment.

In Europe, most major stock markets also opened December in the red, pushing the region's STOXX 600 index down 0.2%. Airbus shares fell nearly 6% on concerns about technical faults in its A320 aircraft.

Source: https://vtv.vn/thi-truong-ky-vong-noel-xanh-nho-kha-nang-ha-lai-suat-dien-rong-100251202072852653.htm