Europe close: Markets manage gains on Fed rate cut hopes
By Josh White
Date: Thursday 27 Nov 2025
(Sharecast News) - European equities eked out modest gains on Thursday as investors continued to position for a potential US rate cut next month and Puma shares surged on renewed takeover speculation.
The pan-European Stoxx 600 edged up 0.12% to 574.89, while Germany's DAX rose 0.22% to 23,777.79.
France's CAC 40 inched 0.04% higher to 8,099.47 and London's FTSE 100 ended flat, up just 0.02% at 9,693.93.
Russ Mould, investment director at AJ Bell, said that "after yesterday's Budget-related drama, there is a quieter feel to markets this morning."
He added that "the FTSE 100 was flat in early trading after gains in Asia and yesterday in the US on rate cut hopes, with a decent showing for retailers balanced out by weakness in the property and mining space."
Market sentiment remained underpinned by growing confidence that the US Federal Reserve will lower borrowing costs when policymakers meet on 9-10 December.
Analysts now saw an 80% to 85% probability of a 25-basis-point cut, driving a steady bid for risk assets across the region.
Mould noted that "after seeing considerable volatility yesterday amid leaks and mixed messages about the UK economic outlook and the implications of Rachel Reeves' decisions, gilt yields ticked a little higher this morning," adding that "the government is likely to be breathing a sigh of relief at the market reaction to date."
Eurozone economic sentiment ticks higher
Economic data provided little drama but pointed to a continued slow improvement in business conditions.
The European Commission's Economic Sentiment Indicator ticked up 0.2 points to 97.0 in November, slightly shy of forecasts but marking its highest level since April 2023.
Gains in services, retail and construction confidence were offset by weaker sentiment in industry.
Among major eurozone economies, confidence strengthened most in Spain, Italy and France, but slipped in Germany and the Netherlands.
Employment expectations also improved, while consumer confidence across the bloc dipped marginally.
German consumer sentiment showed a similar pattern of stabilisation without a convincing recovery.
The GfK index for December rose to -23.2 from -24.1, in line with expectations.
While willingness to buy improved sharply and savings intentions eased, a further decline in income expectations held back a stronger rebound.
Rolf Burkl at the Nuremberg Institute for Market Decisions said the data points to "a stable business" for retailers ahead of Christmas, but warned consumers "do not expect a significant recovery in the short term."
Puma surges on takeover reports, Novo Nordisk in the red
In equities, Puma was the standout performer after Bloomberg reported that several potential bidders, including China's Anta Sports, were exploring a takeover of the German sportswear firm.
The company declined to comment, but the speculation sent its shares up 18.9%, the biggest gain on the Stoxx 600.
Defence contractors also advanced, though they pared earlier increases.
Rheinmetall added 1.24% and Saab rose 2.5% amid ongoing diplomatic efforts by the US to broker a peace deal between Russia and Ukraine.
On the downside, Novo Nordisk fell 1.5%, retracing the prior session's rally, after US authorities confirmed steep cuts to the Medicare price of its blockbuster diabetes and weight-loss drugs Ozempic and Wegovy from 2027.
Reporting by Josh White for Sharecast.com.
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