12.09.202507:29:05UTC+00European Stocks Hit Three-Week High on Fed Easing Bets

On Friday, the STOXX 50 index nudged upwards by 0.1%, reaching 5,390 points, marking its highest level since late August. Similarly, the broader STOXX 600 also experienced a 0.1% rise, moving to 555 points. This uptick was influenced by a sharp increase in US jobless claims and a moderate rise in inflation, both of which have strengthened the anticipation of Federal Reserve interest rate cuts in the coming week and thereafter. Conversely, the European Central Bank (ECB) has indicated an end to its rate-cutting cycle. President Christine Lagarde commented that the bank is now in a "good place," with growth risks becoming more balanced. In the realm of corporate developments, Banco Sabadell saw a decline of 0.6% after its board unanimously rejected a €15 billion takeover bid from BBVA, advising shareholders against offering their shares. Additionally, Ryanair's CEO Michael O’Leary revealed to the Financial Times that the airline is considering cutting an extra 1 million tickets to Spain in response to the country's tax policies. On the economic data front, the UK economy showed no growth in July after a 0.4% expansion in June, a situation that is being closely monitored by the Bank of England ahead of its policy meeting next week.