European Stocks Rise on Fed Rate Cut Optimism
European shares gained on Wednesday, with technology and defence stocks leading the advance. The upbeat mood followed softer U.S. inflation data, which strengthened expectations for a Federal Reserve interest rate cut in September.
The STOXX 600 index rose 0.4% as of 07:04 GMT. Germany’s DAX climbed 0.6% after a dip in the previous session.
Global Markets Rally After CPI Data
Global stocks rallied, and Wall Street ended at record highs as traders priced in a 94% chance of a September Fed rate cut, according to the CME FedWatch Tool.
Later today, leaders from Europe and Ukraine are expected to speak with U.S. President Donald Trump ahead of his planned summit with Russian President Vladimir Putin.
Corporate Movers in Focus
- TUI gained 1.7% after Europe’s largest tour operator reported better-than-expected results, with summer travel demand remaining strong.
- E.ON posted higher first-half core profit and reaffirmed its full-year outlook. The company, Europe’s largest energy grid operator, urged Germany to raise future returns on grid investments. Shares were slightly higher.
- Vestas fell 1.8% after the wind turbine maker posted a smaller-than-expected rise in Q2 operating profit, though it kept its full-year forecast unchanged.
