European Stocks Gain as Investors Await Key US Inflation Data
European stocks advanced as investors awaited US inflation figures that could help determine the path of Federal Reserve monetary policy.
The Stoxx Europe 600 Index rose 0.2% as of 8:14 a.m. in London. Basic resources and health care stocks led gains while energy and insurance lagged.
Swiss Re AG fell 5.5% after disclosing a $250 million charge following a review of “under-performing” portfolios focused on Australia, Israel and South Korea. Ocado Group Plc gained as much as 16%, folowing news it will receive a one-time cash payment of $350 million from Kroger Co., more than previously announced.
The personal consumption expenditures price index — Fed officials’ preferred inflation reading — as well as the delayed September income and spending report are set to be released later today.
The continent’s benchmark is within 1% of its all-time record hit in November, as fears over potentially excessive AI stock valuations have been outweighed by the prospect of further monetary easing in the US. Traders currently price in a chance of more than 90% that the Fed will cut rates.
“Markets are a little nervous to lose some of the good performance they have seen this year — especially after the recent drawback in the crypto world,” said Daniel Varela, chief investment officer at Piguet Galland & Cie SA. “If we get that Fed rate cut it will likely pave the way for a year-end rally.”
Source : Bloomberg.com
