European Stocks Gain as Investors Await Federal Reserve Meeting
European equities rose as global stocks hovered near records and investors awaited Federal Reserve’s decision later this week.
The Stoxx Europe 600 Index rose 0.3% as of 8:14 a.m. in London. Consumer products and bank shares outperformed, while healthcare lagged. Fitch downgraded France’s credit rating on Friday. The French CAC 40 index advanced 0.5%.
Orsted A/S fell as much as 7.6% after it announced plans to sell new shares at a 67% discount to rebuild investor confidence after a bet on the US market went wrong.
European stocks have bounced back this month on optimism that the Fed will lower borrowing costs in time to avoid a recession. Traders have already fully priced in a quarter-point cut at the central bank meeting later this week.
“Cautious optimism prevails ahead of a crucial central bank decision week, which is likely to see the Fed begin a renewed easing cycle,” said Geoff Yu, FX and macro strategist for EMEA at BNY.
Source : Bloomberg
