European Stocks Rise; Fed Cut Hopes Lift DAX, CAC, FTSE
European stocks rose on Thursday, continuing their rally as expectations for further Fed monetary easing increased. At 07:05 GMT, Germany's DAX rose 0.5%, France's CAC 40 0.9%, and the UK's FTSE 100 0.2%. The pan-European STOXX 600 index also edged higher early in the session, extending gains of around 1% on Wednesday after Wall Street closed positive.
The main catalyst came from weak ADP data, which strengthened bets for a 25-bps cut at each of the remaining Fed meetings this year. Meanwhile, the US government shutdown halted the flow of official data—including the NFP, which is usually released on Fridays—making market participants more attentive to private sector indicators. In Europe, speeches by ECB officials such as Luis de Guindos and Patrick Montagner were in focus, while awaiting the release of the August eurozone unemployment rate (expected at 6.2%).
Wednesday's data showed eurozone inflation rose to 2.2% in September from 2.0% in August, bolstering the ECB's case for keeping interest rates on hold for its October 30 meeting. On the corporate front, Renault is in the spotlight following reports of talks with Chery Automobile regarding a manufacturing and sales partnership in South America (Colombia and Argentina), which could potentially leverage Renault's manufacturing network with capital and product design support from Chery. (ads)
Source: Newsmaker.id
