SPDR EURO STOXX 50 ETF [FEZ] Stock Forecast

The ECB will almost surely keep rates on hold at the December meeting. The question is to what extent it will align with the market's aggressive pricing for rate cuts in 2024.

The ECB hike cycle seems over, but the shockwaves of tightening will still shape the eurozone economy in 2024. Traditional lags in transmission are now accompanied by longer ones in average interest burden increases, potentially extending the impact of tightening.

Next week's challenge for the European Central Bank is how to keep all options open without sounding too dovish but also not too detached from reality. The weak macro economic backdrop no longer justifies rate hikes, even for the hawks.

SPDR EURO STOXX 50 ETF offers low expenses, solid performance, and concentrated exposure to European equities. Profit margins of European companies may contract amid a general slowdown, suggesting a "Hold" rating for now. FEZ ETF has outperformed other Europe ETFs, but may not be suitable for those seeking absolute diversification and the lowest expenses.

After hitting a new all-time high in February, the FTSE has struggled to find any sustainable support, hurt by concerns over China, the UK's struggling economy, and high interest rates across the world. We have had some positive data out of China, the UK, and the US this week, which may mean the worst days are behind us.

Rising wages and higher incomes are boosting Europe's economic recovery, but policymakers may face challenges due to population aging and shrinking workforce. Demographics and shorter working weeks mean employers face fierce competition to find qualified workers and must pay more to retain them.

If anything, developments since the September meeting have made it even easier for the European Central Bank to pause at its next meeting. As much as the ECB has tried to keep the door to further rate hikes open since the September decision, recent developments have clearly complicated this position.

Before yesterday's ECB meeting, there was a bit of uncertainty about whether the ECB would hike or not, with markets pricing in a 65% implied probability of a 25-bps hike. A break below the May low of 1.0635 still looks likely for the EUR/USD.

Many economists anticipate that the ECB is nearing the conclusion of its rate-hike cycle due to a slowdown in economic growth.

The European Central Bank has raised key interest rates for the tenth consecutive time in an effort to fight inflation. It also updated forecasts, which slash 2024 growth by 50bps. With rates likely to stay elevated until inflation comes off to the ECB's target levels, the economy can stay uncertain over the next year. Index trackers like the SPDR Euro Stoxx 50 ETF can make good buys right now, as they are diversified and have high-quality holdings.

SPDR EURO STOXX 50 ETF is a US stock and trading under the symbol FEZ

SPDR EURO STOXX 50 ETF stock price is $46.72 today.

Yes, SPDR EURO STOXX 50 ETF is a publicly traded company.