European indexes are rising amid the Federal Reserve's rate decisions

European stock markets are growing in anticipation of three Federal Reserve rate cuts this year, with the Stoxx 600 up 0.6%

Stock index growth
Stock index growth, illustrative photo / pixabay.com

On Thursday, the Western European stock market showed growth, which is associated with expectations of interest rate cuts by the Federal Reserve System of the USA this year.

Key European indexes grew:

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  • Stoxx Europe 600 increased by 0.6% to 508.3 points by noon;
  • the British FTSE 100 rose by 1%, reaching a yearly high;
  • the German DAX added 0.6%;
  • the Spanish IBEX 35 increased by 0.7%;
  • the Italian FTSE MIB grew by 0.4%;
  • the French CAC 40 reached a record mark of 8200 points, but then fell to 8175 points, which is still 0.2% higher than on Thursday.

The confidence indicator of French entrepreneurs in March reached a year's high, amounting to 102 points, exceeding analysts' forecasts.

Preliminary data shows that the composite PMI index for the eurozone in March was 49.9 points, remaining below the growth threshold, but becoming the highest in the last nine months.

In Germany, the PMI rose, while in France and the United Kingdom, it fell.

Shares of the largest oil producers and semiconductor companies showed growth.

Next Plc reported record profit and a positive outlook for the current year, leading to a 4.6% rise in its shares.

Merck is investing in production in South Korea, with the company's shares up 2%.

However, shares of Kering and other French luxury goods producers fell amid pessimistic sales forecasts.

Previously, the Federal Reserve System (FRS) confirmed market expectations, not changing the key interest rate, which remains at the level of 5.25-5.5%. This decision is aimed at fighting inflation and maintaining employment levels.

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