European credit default protection costs have fallen, boosted by prospects of a US Federal Reserve rate cut.

As the market expects the Fed to cut interest rates next week, market sentiment improves, and the default protection cost of Euro credit bonds decreases. According to data from the London Stock Exchange Group, market trends indicate an 85% possibility of the Fed cutting interest rates by 25 basis points on December 10. S&P Global Market Intelligence data shows that the iTraxx Europe Crossover Euro high-yield credit default swap index fell by 2 basis points to 253 basis points. The iTraxx Europe Main Euro investment-grade credit default swap index fell by 1 basis point to 52 basis points.