The SMI remained stable in pre-market trading, while the DAX started off with a decline. The focus of the market is on the upcoming decisions from the Swiss National Bank (SNB) and the European Central Bank (ECB).

In Tokyo, the Nikkei index experienced a significant increase of 1.4 percent, reaching a two-month high of 39,906.84 points, while the broader Topix rose by 1.1 percent to 2,778.63 points. This rise in the market follows positive signals from Wall Street, which were driven by a favorable US inflation report. This report has raised expectations for a rate cut by the Federal Reserve in their upcoming meeting. Yugo Tsuboi, the chief strategist at Daiwa Securities, has observed that the recent US inflation data has led the market to anticipate a rate cut by the Fed next week.

Furthermore, the Bank of Japan (BOJ) is expected to announce its monetary policy decision next week, and market participants are pricing in a potential rate hike by January.