Europe midday: Shares up as Boe cuts rates; Trump hails US-UK 'deal'
By Frank Prenesti
Date: Thursday 08 May 2025
(Sharecast News) - European stocks extended gains on Thursday amid another earnings dump as the Bank of England cut interest rates and US President Donald Trump hailed a "deal" with the UK, but did not mention specifics.
The pan-European Stoxx 600 was up 0.8% with Germany's DAX outperforming, rising 1.3% and Britain's FTSE 100 up 0.33% after the BoE's policy committee cut its base rate by 25 basis points to 4.25%. earlier in the day Norway and Sweden left their rates on hold.
Overnight the US Federal Reserve also left its benchmark unchanged and flagged inflationary threats if the tariffs stayed in place.
"The auto industry will be paying particular attention, given the current 25% auto tariff is a tough pill to swallow. Aside from trade talks, it's central bank decisions that are dominating the newsreel this week," said Hargreaves Lansdown analyst Matt Britzman.
"While the US Fed held things steady, UK rates are expected to see some action, as the combination of a weaker growth outlook and better than expected inflation offers enough wiggle room to cut."
It wasn't a huge surprise to see US rates unchanged, but it will come as a blow to President Trump, who has been pushing hard for the Fed to abandon its independence and deliver lower rates for Americans."
"For markets, a stable and independent Fed is a positive, and comments around the risks of both higher inflation and unemployment didn't do much to upset the apple cart."
In equity news, shares in ArgenX slumped after first quarter results, while British Gas owner Centrica also fell sharply on a trading update.
Spanish lender Banco Sabadell jumped after first-quarter profit surged beat expectations.
Anheuser-Busch InBev rose after the brewer's first-quarter profit growth came in at more than double analyst estimates.
Reporting by Frank Prenesti for Sharecast.com
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