PARIS (Reuters) – The main European stock markets fell on Friday at the start of the session, investors positioning themselves for a more restrictive American monetary policy in 2025.

In Paris, the CAC 40 fell by 0.55% to 7,353.44 points around 08:06 GMT, weighed down by the decline in luxury values. The Dax in Frankfurt eroded by 0.19%, while the FTSE in London lost 0.01%.

The pan-European FTSEurofirst 300 index fell by 0.07%, the EuroStoxx 50 by 0.22% and the Stoxx 600 by 0.06%.

The Federal Reserve is expected to cut rates by 45 basis points this year, according to money markets, suggesting that traders consider it possible that the central bank will cut rates only once in 2025.

Weekly jobless claims, released Thursday, confirmed that the job market remained strong. Next week’s monthly employment report could also ward off the prospect of further rate cuts if it confirms that labor demand is resilient.

Investors are also preparing for the start of Donald Trump’s second term, which will be inaugurated on January 20.

Liquidity remains constrained, with some operators still absent until Monday.

(Written by Corentin Chappron, edited by Blandine Hénault)

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