European stocks rise supported by the Federal Reserve’s tendency to ease, and all eyes are on the European Central Bank

2023-12-14 09:12:00

© Archyde.com. A screen showing data for the German DAX index on the Frankfurt Stock Exchange on Wednesday. Photography: Archyde.com.

(Archyde.com) – European stocks jumped on Thursday, supported by gains in real estate stocks and a decline in regional bond yields, as investors were optimistic regarding the US Federal Reserve’s hint to reduce borrowing costs in 2024 and their anticipation of the European Central Bank’s decision.

The European index rose 1.6 percent by 0810 GMT, and the main index of leading stocks in the euro zone, the Stoxx Europe 50, recorded a 1.4 percent rise and reached its highest level in more than 22 years.

The French and German CAC-40 indices also touched their highest levels ever and rose 1.5 percent and 1.4 percent, respectively.

Real estate sector shares jumped 6.4 percent and topped the winning sectors.

The Federal Reserve kept interest rates unchanged, and its Chairman, Jerome Powell, indicated that the cycle of raising interest rates had likely ended due to the decline in inflation, and that talk of reducing interest rates had become “subject to consideration.”

The focus now turns to awaiting the monetary policy decision from the European Central Bank, expected to be issued at 1315 GMT, with expectations to keep interest rates unchanged.

(Prepared by Salma Najm for the Arab Bulletin – Edited by Mahmoud Salama)

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