Il Nuovo Postiglione - Europe stocks advance after Wall Street records

NYSE - LSE

CMSC	-0.53%	20.81	$
RIO	0.42%	103.27	$
JRI	-0.58%	12.14	$
BCC	2.64%	79.21	$
AZN	-1.27%	162.7	$
BTI	-1.12%	55.35	$
BCE	-0.59%	23.67	$
BP	0.52%	43.81	$
GSK	-1.96%	49.89	$
NGG	-0.06%	78.12	$
CMSD	-0.34%	20.69	$
RELX	-3.21%	35.51	$
VOD	1.89%	16.9	$
RBGPF	0%	70	$
RYCEF	1.84%	20.12	$

Europe stocks advance after Wall Street records

ECONOMY 10.07.2024

Europe stocks advance after Wall Street records / Photo: Bonnie Cash - GETTY IMAGES NORTH AMERICA/AFP

Europe's stock markets rose Wednesday following a record-breaking Wall Street performance after US Federal Reserve chief Jerome Powell hinted at interest-rate cuts later this year.

Text size:

London, Frankfurt and Paris also rebounded from recent losses sparked by French post-election uncertainty.

Traders shrugged off a mixed Asian showing and awaited further comments from Powell.

The dollar traded mixed.

Although his semi-annual Senate testimony on Tuesday did not indicate when Fed interest-rate cuts may come, analysts are predicting the first in September and a second before year's end.

"Powell placed emphasis on needing 'greater confidence' that inflation was moving back towards target but also acknowledged the risk of leaving interest rates high for too long, pointing to cooling labour market conditions and the risk of unduly weakening economic activity," noted Lindsay James, investment strategist at Quilter Investors.

"The Fed's preferred measure of inflation, core PCE inflation, now providing a more reassuring message, together with the signs of a cooling economy, (means) that investors' expectations of two rate cuts... are reasonable" by the end of the year.

James stressed however that the US central bank would refrain from any move in rates in November, in order to show impartiality close to a US presidential election.

Powell is set to testify before a House committee later Wednesday, and investors will also be eyeing US consumer inflation data due Thursday for further insight that price rises are still easing as hoped.

"Thursday's CPI data could be crucial in determining whether the probability of a September rate cut increases further from the current 70 percent," said SPI Asset Management's Stephen Innes.

In Asia on Wednesday, Hong Kong stocks finished in the red after earlier rising more than one percent. Shanghai closed lower, and Sydney, Mumbai and Manila were also down.

But Tokyo stocks advanced with the benchmark Nikkei 225 reaching an all-time high. Seoul was flat, while Taipei, Wellington, Bangkok, Singapore, Jakarta and Kuala Lumpur all rose.

- Key figures around 1110 GMT -

London - FTSE 100: UP 0.6 percent at 8,188.46 points

Paris - CAC 40: UP 0.7 percent at 7,559.45

Frankfurt - DAX: UP 0.6 percent at 18,348.80

EURO STOXX 50: UP 0.6 percent at 4,934.44

Tokyo - Nikkei 225: UP 0.6 percent at 41,831.99 (close)

Hong Kong - Hang Seng Index: DOWN 0.3 percent at 17,471.67 (close)

Shanghai - Composite: DOWN 0.7 percent at 2,939.36 (close)

New York - Dow: DOWN 0.1 percent at 39,291.97 (close)

Euro/dollar: UP at $1.0822 from $1.0819 at 2040 GMT on Tuesday

Pound/dollar: UP at $1.2807 from $1.2790

Dollar/yen: UP at 161.47 yen from 161.29 yen

Euro/pound: DOWN at 84.51 pence from 84.56 pence

West Texas Intermediate: DOWN 0.1 percent at $81.30 per barrel

Brent North Sea Crude: DOWN 0.2 percent at $84.46 per barrel

burs-rfj/bcp/rl

E.Danieli--INP

Featured

Bangladesh measles toll nears grim 1,000-child mark

Bangladesh's deadliest measles outbreak in decades is nearing the grim milestone of 1,000 child deaths, as a devastating epidemic sweeps through the country and crowded hospital wards fill with struggling babies.

Bolivia farmers return to streets over diesel price hikes

Several hundred coca farmers and supporters of former Bolivian president Evo Morales demonstrated in the central city of Cochabamba on Friday over the government's doubling of diesel prices, AFP reporters said.

S&P Revises Outlook on Freedom Holding Corp. and Core Subsidiaries to Positive

S&P Global Ratings has revised the outlook on the long-term credit ratings of Nasdaq-listed Freedom Holding Corp. and its four core operating subsidiaries from “stable” to “positive,” while affirming their international credit ratings.

Moody’s Assigns First-Time Insurance Financial Strength Ratings to Freedom Insurance and Freedom Life

Moody’s Ratings has assigned insurance financial strength ratings to two Freedom Holding Corp. (Nasdaq: FRHC) insurance subsidiaries for the first time. Freedom Finance Insurance JSC, operating as Freedom Insurance, received Ba1 local- and foreign-currency insurance financial strength ratings, while Freedom Life JSC received Baa3 ratings. Both carry stable outlooks.