FX.co ★ European Stocks Set for Lower Open

European equity markets were set to open lower on Wednesday, marking the final trading session of 2025, following a second consecutive day of record closes on Tuesday. With year-end liquidity remaining thin and the New Year holidays approaching, trading activity is likely to be subdued. Most regional markets are scheduled for early closure and will remain closed until January 1st. Meanwhile, investors evaluated the minutes from the US Federal Reserve’s December meeting, which suggested that most policymakers are open to the idea of interest rate cuts if inflation continues to decline. However, there remains disagreement on the timing and extent of such potential easing. In Asia, recent data indicated a rebound in China’s manufacturing sector in December, ending an eight-month decline and providing a positive economic outlook for the new year. In Europe, there are no significant economic data releases scheduled for Wednesday.