Stocks advance on interest rate optimism; UK election in focus

Stocks advance on interest rate optimism; UK election in focus

European stocks rose on Thursday on optimism about US interest rate cuts following lacklustre economic data, while the London market advanced as voting in the UK general election got underway, with polls predicting a historic victory for the Labour Party.

The pan-European STOXX 600 index closed up 0.56% at 517.54 points, hitting its highest level of the week.

Britain’s FTSE 100 index rose 0.86% to 8,241.26 points, with markets waiting to see what majority Labour might gain in the election.

“The UK result, widely expected to be a Labour victory, will not have much of an impact unless there is a major upset or surprise outcome, as markets have probably already priced that in,” said Rabobank senior macro strategist Bas van Geffen.

French stocks advanced for a second day, up 0.83% to 7,695.78 points, amid intensified efforts by opponents of Réunion National (RN) to prevent the far-right party from taking power.

The banking sector, which includes French financial institutions such as Societe Generale and BNP Paribas, rose 1.3%, leading sector gains.

Weak U.S. data boosted sentiment toward rate cuts as jobless claims rose last week, pointing to a cooling labor market.

In LONDON, the Financial Times index rose 0.86% to 8,241.26 points.

In FRANKFURT, the DAX index rose 0.41 percent to 18,450.48 points.

In PARIS, the CAC-40 index gained 0.83% to 7,695.78 points.

In MILAN the Ftse/Mib index rose by 0.77%, to 34,106.01 points.

In MADRID, the Ibex-35 index recorded a positive variation of 0.09%, at 11,066.30 points.

In LISBON, the PSI20 index rose by 0.25% to 6,681.29 points.

Source: Terra

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