BBEU ETF

The results of the 2024 presidential election have certainly rocked the markets, and ETFs were no exception.  Using Bloomberg data, Scotia ETF Services reports that U.S. ETFs traded about $262 billion on Nov. 6, the day after the election.

The European Central Bank cut interest rates by 25bps, bringing the deposit rate down to 3.75%. Inflation is expected to come in at 2.5% in 2024, 2.2% in 2025 and 1.9% in 2026.

U.S. Weekly FundFlows Insight Report: Short/Intermediate Investment Grade Funds Have Yet To Report A Weekly Outflow In 2024

Europe managed to avoid an energy crisis despite the Ukraine war, with inflation under control and interest rates peaking. The European Central Bank is expected to lead interest rate cuts, followed by the Bank of England and Scandinavian central banks.

The first question for next week's European Central Bank meeting is how the Bank will react to current market pricing. The second, however, is why should the ECB react to current market pricing.

As European inflation rates converge with targets, markets expect rate cuts. But central banks are set on a decisive victory over inflation. As expected, the Bank of England left the bank rate unchanged at 5.25% at its December meeting.

European equities are estimated to outshine the United States in the first half of 2024 driven by moderating inflation and the possibility of ECB cutting interest rates next year. Look into funds to increase exposure in Europe and capitalize on the optimistic outlook.

The European Central Bank (ECB) kept its key policy rates on hold today for the second consecutive meeting. The interest rate on the main refinancing operations, the marginal lending facility, and the deposit facility remain at 4.5%, 4.75% and 4.0%, respectively.

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.