European stock markets are quiet amid hopes of a Federal Reserve interest rate cut

European stock markets were mostly flat on Thursday as investors watched expectations of an interest rate cut by the U.S. Federal Reserve next month.

The pan-European STOXX 600 index slipped 0.1%, while the UK's FTSE 100 fell 0.3%, Germany's DAX rose 0.4%, and the CAC 40 slipped 0.1%.

Although there were signs of internal debate among Fed policymakers about the possibility of cutting borrowing costs at its final meeting of the year in December, the central bank is now widely expected to cut interest rates by 25 basis points. Officials previously made similar cuts at their October and September meetings, signaling a decision to prioritize a weakening labor market over persistent inflation.