{"id":49159,"date":"2024-07-11T09:36:16","date_gmt":"2024-07-11T09:36:16","guid":{"rendered":"https:\/\/www.pantheregroup.com\/2024\/07\/11\/european-shares-edge-higher-on-rate-cut-hopes\/"},"modified":"2024-07-11T09:36:16","modified_gmt":"2024-07-11T09:36:16","slug":"european-shares-edge-higher-on-rate-cut-hopes","status":"publish","type":"post","link":"https:\/\/www.pantheregroup.com\/2024\/07\/11\/european-shares-edge-higher-on-rate-cut-hopes\/","title":{"rendered":"European Shares Edge Higher On Rate Cut Hopes"},"content":{"rendered":"
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European stocks advanced on Thursday, with underlying sentiment supported by encouraging economic data from Germany and U.K. as well as expectations of a Federal Reserve rate cut in September. <\/p>\n

Federal Reserve Chair Jerome Powell reiterated on Wednesday that the U.S. job market is cooling and that the central bank will act ‘when and as’ needed regardless of political factors. <\/p>\n

There are expectations that a U.S. government report due later in the day will show consumer price inflation continued to moderate in June.<\/p>\n

Closer home, soft inflation data from Germany left the door open for another European Central Bank rate cut in September.<\/p>\n

The consumer price index rose 2.2 percent in June, following May’s 3-month high of 2.4 percent. That was in line with the flash data published earlier.<\/p>\n

EU-harmonized inflation also softened to 2.5 percent from 2.48 percent, as estimated.<\/p>\n

Elsewhere, data showed the U.K. economy<\/span> rebounded at a faster-than-expected pace in May, adding to doubts about the possibility of an August rate cut by the Bank of England.<\/p>\n

Real GDP grew 0.4 percent in May after showing no growth in April, the Office for National Statistics reported. The actual growth was double the expected 0.2 percent expansion.<\/p>\n

The pan European STOXX 600 was up 0.4 percent at 518.69 after rising 0.9 percent on Wednesday.<\/p>\n

The German DAX edged up 0.2 percent, France’s CAC 40 added half a percent and the U.K.’s FTSE 100 was up 0.3 percent. <\/p>\n

In corporate news, Hugo Boss rose about 2 percent after Frasers Group increased its stake in the German fashion brand.<\/p>\n

Fielmann surged 3.5 percent. The eyewear company forecast improved EBT margin for 2024 and 2025 after posting encouraging results for the first half.<\/p>\n

Suedzucker slumped 4.3 percent after the sugar producer posted a 45 percent fall in first-quarter earnings.<\/p>\n

French media group Vivendi rallied 2.2 percent after JP Morgan placed the stock on its “positive catalyst watch.<\/p>\n

British water company Pennon soared 7.5 percent after naming an insider as its new CFO.<\/p>\n

Peer Severn Trent rallied 3 percent after reporting a strong start to the year.<\/p>\n

Oil services firm John Wood declined 1.2 percent after revenues fell 6 percent in the six months to 30 June.<\/p>\n

Hays climbed 1.1 percent. The recruiter said it expects full-year profit to be around the bottom end of the market consensus range. <\/p>\n<\/p>\n

Business News<\/p>\n<\/div>\n