The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, September 12, 2024. [Reuters]
European shares surged after the European Central Bank (ECB) cut interest rates in response to struggling inflation and economic conditions. The STOXX 600 index reached one-week highs, reflecting positive investor sentiment across all regional markets.
The ECB’s decision to lower the deposit rate by 25 basis points to 3.50% follows a similar move in June, signaling potential future cuts. Attention now turns to the US Federal Reserve’s upcoming rate adjustments next week.
Sectors like mining and technology experienced notable gains, driven by expectations of US rate cuts. Despite fluctuations in inflation data, market outlooks remain optimistic, with potential for further rate cuts by the ECB later this year.
The market also reacted to developments in the pharmaceutical and technology industries, with companies like Roche and Nvidia influencing share prices. Overall, market trends suggest a positive outlook amidst global economic uncertainties.