The Albany Gazette - European stocks rise awaiting US rate cut next week

NYSE - LSE

RBGPF	100%	58.83	$
RELX	-0.29%	47.99	$
GSK	-2.01%	40.8	$
VOD	-0.5%	10.01	$
NGG	1.04%	69.55	$
BTI	-0.35%	37.44	$
AZN	-0.66%	78.38	$
CMSC	0.12%	25.15	$
RIO	-2.53%	63.57	$
CMSD	0.04%	25.02	$
BP	-0.37%	32.64	$
JRI	-0.6%	13.32	$
RYCEF	0.29%	6.97	$
BCC	-5.23%	137.5	$
SCS	-3.02%	12.92	$
BCE	-0.43%	35.04	$

European stocks rise awaiting US rate cut next week

ECONOMY 13.09.2024

European stocks rise awaiting US rate cut next week / Photo: Brendan SMIALOWSKI - AFP

European stock markets extended gains, gold hit a record high and the dollar fell on Friday ahead of an expected US interest-rate cut next week.

Text size:

More data this week suggesting the Federal Reserve was winning the battle against inflation provided an extra kick for global equities after recent drops caused by worries of a possible US recession.

Asia's main stock markets diverged as they closed out the week, while Wall Street advanced Thursday.

While concerns linger over last week's big miss on US jobs creation, traders are turning their attention to the central bank decision next Wednesday.

"Gold prices are once again at record levels as the dollar weakens ahead of an anticipated interest-rate cut from the US Federal Reserve," noted Russ Mould, investment director at AJ Bell.

"A weaker dollar is typically supportive to gold because it is denominated in the US currency.

"Lower rates are also a driver for the precious metal as it increases its attractiveness versus assets like cash and bonds."

The price of gold struck an all-time high $2,572.98 per ounce on Friday.

Having slashed rates in the early months of the pandemic, the Fed began hiking them in 2022 as inflation started to take hold, and they kept lifting until rates hit a two-decade high.

Now, with disinflation seemingly kicking in and the labour market softening, decision-makers are tipped to start cutting again, with debate on whether it will be a 25 or 50-basis-point move.

The European Central Bank on Thursday further reduced eurozone borrowing costs as inflation cools, while eyes will be on the Bank of England next week to see if it will carry out back-to-back cuts.

In company news, Danish logistics group DSV on Friday announced a deal to acquire Schenker, a division of German rail firm Deutsche Bahn, for 14.3 billion euros ($15.8 billion) and create a "powerhouse" in the freight-forwarding sector.

- Key figures around 1100 GMT -

London - FTSE 100: UP 0.4 percent at 8,270.09 points

Paris - CAC 40: UP 0.3 percent at 7,457.00

Frankfurt - DAX: UP 0.5 percent at 18,617.85

Tokyo - Nikkei 225: DOWN 0.7 percent at 36,581.76 (close)

Hong Kong - Hang Seng Index: UP 0.8 percent at 17,369.09 (close)

Shanghai - Composite: DOWN 0.5 percent at 2,704.09 (close)

New York - Dow: UP 0.6 percent at 41,096.77 (close)

Euro/dollar: UP at $1.1090 from $1.1078 on Thursday

Pound/dollar: UP at $1.3129 from $1.3126

Dollar/yen: DOWN at 140.63 yen from 141.78 yen

Euro/pound: UP at 84.49 pence from 84.36 pence

Brent North Sea Crude: UP 0.9 percent at $72.64 per barrel

West Texas Intermediate: UP 1.0 percent at $69.64 per barrel

(W.Walker--TAG)

Featured

Hezbollah in disarray after Israeli air strike kills top commanders

Hezbollah said Saturday that a second senior commander was among 16 fighters killed in an Israeli air strike on its Beirut stronghold the previous day, highlighting the scale of the blow to its military leadership.

The BYD Seal Hybrid U DM-i AWD in a practical test by journalists

With the BYD Seal Hybrid U DM-i AWD, the Chinese car brand BYD is bringing a new competitor to the European hybrid SUV market. The manufacturer BYD has obviously realised very quickly that the enthusiasm for electric cars in Europe has its limits and that our range anxiety is deeply rooted, with Germany's Minister of Economic Affairs Robert Habeck recently announcing new tax benefits for electric cars and saying: "... we are currently preparing further tax relief for electric cars as part of the growth initiative". Despite everything, BYD is following up the all-electric version of the VW ID.4 competitor as the DM-i with its first plug-in hybrid, the BYD Seal Hybrid U DM-i in the all-wheel drive version, as the "AWD".

Ethiopians struggle with bitter pill of currency reform

In a small fashion store in Ethiopia's capital, Medanit Woldegebriel's dresses have almost doubled in price in the past two months, sending customers fleeing.

Sri Lanka votes in first poll since economic collapse

Cash-strapped Sri Lanka began voting for its next president Saturday in an effective referendum on an unpopular International Monetary Fund austerity plan enacted after the island nation's unprecedented financial crisis.