European Shares Close Another Week In Green

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European Shares Close Another Week In Green

European Shares Close Yet Another Week In Green On Rate Cut Rumors

The bullish rally in the European shares continued even during Friday, which is a sign that the markets really believe in the rumors of rate cuts.

Now that even the Fed chair has shed some light on how the rate cuts will come early, it makes sense for the EU stocks to turn higher.

STOXX 600 Up By 0.1%

The STOXX 600, which tracks many European stocks, gained 0.1% during Friday's session. Overall, that's the 5th week in a row that the STOXX 600 has continued to close in green.

Elsewhere, the DAX from Germany remained flat, but the CAC-40 from France showed a +0.3% change for the day. In addition, the real estate stocks from the EU were among the top movers as talks about rate cuts have proven to be a breath of fresh air for them.

However, the telecom sector's stocks were not that fortunate as they ended the week in red. Despite the selling pressure in the telecommunication sector, the stock index remained positive.

It looks like the Fed will not be alone when it comes to the rate cuts starting next year. According to Barclays, the ECB will introduce a 25 bps rate cut in April 2024, which will then continue until the end of the year.

Meanwhile, an official from the ECB also affirmed that the most probable move for the central bank is to lower the rates. At the same time, they also added that the central bank should take a little while before the policy pivot.

If we look at some major movers this week, the first one is Sectra (technology company), which gained 8.3%. Millicom, another tech company, also jumped by 2.7% after the announcement of the share buyback program.

The one stock that stood out as the worst among its peers was Symrise, with a -7.6% change for the day. The decline in this company took place after cutting the margin guidance.

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