The continent-wide STOXX 600 index was 0.9 per cent higher at 519.15 points, with all sectors trading higher except telecom that slipped 0.6 per cent
European stocks jumped nearly 1 per cent on Thursday after the U.S. Fed delivered a 50 bp rate cut and flagged that further easing would be measured, raising hopes of a soft landing for the American economy.
The continent-wide STOXX 600 index was 0.9 per cent higher at 519.15 points, as of 0712 GMT, with all sectors trading higher except telecom that slipped 0.6 per cent.
The U.S. central bank started its monetary easing cycle on Wednesday with a big cut that brought the benchmark policy rate to 4.75 per cent-5.00 per cent range.
Fed Chair Jerome Powell said this was meant to show policymakers’ commitment to sustaining a low unemployment rate now that inflation has declined.
Investors will now watch out for Bank of England’s (BoE) rate decision at 1100 GMT, with Britain’s benchmark FTSE 100 0.9 per cent higher ahead of the decision.
In addition, inflation in the U.K.’s closely watched services sector remains stubbornly higher, new data showed Wednesday, likely prompting caution from policymakers.
Also on Thursday, Norway’s central bank will deliver its latest interest rate decision.
Among stocks, Next jumped 4.4 per cent on Thursday as the British clothing retailer is on track to make an annual profit of nearly £1 billion ($1.3 billion) after it raised its outlook for the second time in two months.
British online grocer Ocado Group surged 12.6 per cent after Ocado Retail lifted its forecast for 2023-2024 following a 15.5 per cent rise in its revenue.
Shares of IG Group slid 2.7 per cent as the company was trading without entitlement to its latest dividend pay-out.
