European Stocks Move Higher

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European Stocks Move Higher

European Stocks Move Higher As Fed Cut Rates

Most of the European stocks have moved higher on Thursday after the Fed's decision to cut the rate by 50 basis points. However, the Fed has made it clear that any deeper rate cuts are not yet on the cards.

The recent rate cuts have improved the chances of a soft landing for the US economy. At the same time, it will improve the labor market, which will lead to more consumer spending.

Stoxx 600 Trades Near 518.24

The STOXX 600 from Europe also gained 0.7% after the rate cuts and was last seen at 518.24. That's the highest level of the last 2 weeks and shows that European investors are very optimistic about the situation.

The one sector which gained the most was Miners which is now up by 3%. If this continues, it will end up being the best day for the mining sector of the STOXX 600.

Similarly, a gain of 0.5% - 1.3% was also seen in the real estate, banking, and tech sectors of Europe. However, the utilities and the telecom sector dropped by 0.7%, making them an outlier.

The Fed chair also talked about their new priority... According to them, they now want to keep the jobless rate as low as possible, and inflation is no longer a threat.

According to the markets, the total easing by the US central bank will be 72 bps in 2024. The Fed has already delivered 50 bps, which means there's little room left for the US Federal Reserve.

Now, European investors are waiting for the BoE's decision on the interest rate. Ahead of the big event, the FTSE 100 is up by 0.7% as the central bank is expected to keep rates steady.

One of the big gainers for the day in the UK markets was Ocado (OCDO), which is up by almost 10%. This came as the retail giant has improved its forecast for the 23-24 after a big jump in revenue.

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