European Shares Advance On Fed Rate Cut Hints

stockmarkets dec21 11jul19

European stocks rose on Thursday to snap a four-day losing streak after
Federal Reserve Chair Jerome Powell signaled that the U.S. central bank is likely to cut interest rates soon.

The Fed is expected to reduce key U.S. borrowing costs by 25 basis points at its upcoming July 30-31 policy meeting, but likely to depend on data for any further cut after July.

Investors await the release of the European Central Bank's June minutes later in the day.

The pan European Stoxx 600 was up 0.3 percent at 388.32 after declining 0.2 percent in the previous session.

The German DAX and the U.K.'s FTSE 100 were up around 0.2 percent, while France's CAC 40 index was gaining 0.4 percent.

Swiss Re edged down slightly after suspending the $4.1 billion IPO (initial public offering) of its U.K. life insurance business.

Energy stocks were moving higher as oil prices hit seven-week highs. BP Plc rose 0.8 percent, Total SA gained 1.1 percent and Tullow Oil advanced 1.3 percent.

Ryanair Holdings declined 1.2 percent. The boss of the airline warned on Wednesday that the prolonged grounding of Boeing's 737 MAX may weigh on the airline's growth plans.

Reckitt Benckiser Group rallied 2.4 percent after it reached agreements to settle investigations related to the sales and marketing of Suboxone Film.

Indivior jumped 27 percent after raising its annual profit and revenue forecast.

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