European stocks continue to rise amid optimism about possible Fed rate cuts

(MENAFN) European stocks continued their upward momentum on Friday, marking a fourth consecutive session of gains as global markets showed increased risk appetite, buoyed by expectations that the U.S. Federal Reserve might cut interest rates in September. The pan-European STOXX 600 index climbed 0.3 percent by 0710 GMT, reaching its highest level in two weeks and setting the stage for its best weekly performance since early May. This positive trend was largely reflected across most European stock exchanges, signaling broad market optimism.

However, the UK's FTSE 100 index bucked the trend, dipping 0.2 percent despite British retail sales rising by 0.5 percent in July, which was in line with market expectations. This decline highlights the mixed reactions to economic data, even when it meets forecasts. In contrast, individual stocks such as Bayer and Stellantis saw significant movements. Bayer shares surged 7 percent after the company secured a legal victory that could potentially reduce its liabilities related to allegations that its Roundup weedkiller causes cancer. Meanwhile, Stellantis shares rose 2.6 percent despite facing a lawsuit from U.S. shareholders who accused the European-American automaker of concealing high inventories and other financial weaknesses.

Swiss banking giant UBS also experienced a positive trading session, with its shares increasing by 1.1 percent. This rise followed the bank’s announcement that it would liquidate a USD2 billion real estate fund acquired during its recent takeover of Credit Suisse. The series of gains in various sectors underlines the resilience and confidence in the European markets, driven by a combination of corporate developments and macroeconomic expectations. 

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