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Europe close: Stocks end week on a positive note

By Alexander Bueso

Date: Friday 13 Sep 2024

Europe close: Stocks end week on a positive note

(Sharecast News) - European shares finished higher on Friday as the betting increased on a larger-than-expected US interest rate cut in US, a day after the European Central Bank trimmed its benchmark.

"Following data showing that US consumer sentiment is at a 4-month high, investors are now looking forward to next week's probable first US Fed interest rate cut, possibly by as much as 50 basis points," said IG senior technical analyst Axel Rudolph.

"It'll be the first in over four years after holding rates at a 23-year high of 5.25% to 5.5% since last July."

The pan-regional Stoxx 600 index was up 0.76% to 515.95 with all major bourses higher alongside. Former head of the New York Federal Reserve Bill Dudley said there was a "strong case" for a 50 basis point cut.

The Fed was next due to meet to decide on rates on 18-19 September.

On Thursday the European Central Bank cut rates as expected - its second of the year - by 25 basis points and bringing its key rate to 3.5%.

In equity news, shares in Stellantis were up even as the automaker said it was suspending production of its electric Fiat 500 model due to weak demand.

Vodafone gained 1% despite Britain's competition regulator ruling that its planned £15bn merger with Three would lead to higher prices for customers.

French payment group Worldline slumped 14% after the company announced the departure of its chief executive Gilles Grapinet and cut its 2024 revenue and core earnings guidance.



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