Markets

European stocks bounce back on US rate cut hopes

2019-10-09 13:23:08 GMT (Economies.com)

European stocks opened higher today, to resume their gains which were impeded yesterday for the first session in 4, on increased bets on about a US rate cut after Fed Governor Jerome Powell's recent remarks.

 

Stoxx Europe 600 was higher by 0.4% as of 10:55 GMT, while it closed yesterday lower by 1.1%, for the first session in 4 on concerns about escalation of the US-China trade war and uncertainty about the UK's exit from the EU (Brexit).

 

The index opened Wednesday's session higher, to rising rising for the fourth session in the last 5, as most of the major European markets and sectors rose.

 

The US Federal Reserve Chairman Jerome Powell hinted on on Tuesday that the bank is open to further rate cuts and stated that its members will act as appropriate to support current US economic expansion and growth which can be sustained, which increased the market's hopes about the US monetary policy.

 

Investors are anticipating today another statements by Chairman Jerome Powell for more proof in addition to the release of the recent Fed meeting minutes, as the meeting saw the second US interest rate cut during this year.

 

S&P 500 futures gained 0.9%, as it closed lower by 1.6% yesterday at Wall Street, in its second daily loss.

 

The Euro Stoxx 50 index rose by 0.7%, in France the CAC 40 rose by 0.7%, and Germany's DAX rose by 0.9%. 

 

While in London the FTSE 100 rose by more than 0.5%, as most stocks took advantage of the continued British pound drop due to Brexit uncertainty.

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