On November 28, 2024, Spain reported a rise in consumer prices, with inflation reaching 2.4% year-on-year for November, up from 1.8% in October. This increase aligns with economists' expectations and is attributed to base effects, not likely to disrupt the European Central Bank's plans for interest rate reductions.
In the UK, Chancellor Rachel Reeves announced a £26 billion ($33 billion) tax increase on businesses, which could potentially lead to a loss of up to 130,000 jobs. Analysis indicates that employers may reduce hours or employment in response to higher National Insurance Contributions, potentially raising the unemployment rate by 0.4 percentage points.
Meanwhile, European stock markets showed signs of recovery, with the pan-European STOXX 600 index climbing 0.6% after two days of declines. Technology shares experienced a notable surge, driven by positive reports regarding U.S. chip curbs on China being less severe than anticipated. Key companies in this sector saw significant gains, with ASML and others increasing around 4%.
Political uncertainty continues to loom in France, where Prime Minister Michel Barnier faces challenges in passing the 2025 budget through a divided parliament. Polls indicate that a majority of the French population, 53%, supports the government's dissolution.
Germany's inflation data is expected later today, which will provide further insight into the European Central Bank's future rate decisions, following recent concerns raised by strong U.S. inflation figures.