Markets Dip Ahead of Federal Reserve Decision

On December 18, investors are focused on the Federal Reserve's upcoming interest rate decision, anticipated to be a quarter-point cut to 4.25-4.5%. Wall Street is experiencing volatility, with the Dow Jones facing its longest losing streak since 1978, and mixed signals are prevalent in European stock markets. Retail sales data showed a surprising 0.7% increase in November, driven by strong automobile sales, but the semiconductor sector is under pressure due to geopolitical tensions, particularly from China’s investigations into U.S. firms. Futures indicate slight declines for the FTSE Mib and DAX, while the CAC 40 is expected to rise. Additionally, despite a dip in major U.S. indices, the cryptocurrency market is thriving, with Bitcoin reaching new heights. Overall, market participants remain cautious, awaiting insights into the Fed's future policy outlook.