Europe open: Shares edge ahead as Puma surges on bid talk

(Sharecast News) - European markets made slight gains at the open on Thursday, with Puma shares in focus on reports of a potential bids for the German sportswear giant.

The pan-European Stoxx 600 rose 0.1% in early deals, with all major bourses in positive territory. Trading is expected to be subdued with Wall Street closed for the Thanksgiving holiday.

Investors have been increasing bets this week that the US Federal Reserve will cut interest rates when it holds its next policy meeting on December 9-10.

Analysts have priced in an 80 - 85% chance of a 25 basis point cut.

"Optimism leading into today's Thanksgiving holiday lifted US stocks, as investors sought a glass half-full approach on impending monetary easing," said Interactive Investor head of markets Richard Hunter.

"There will also be a shortened US session tomorrow, but in the limited action this week has lifted the main indices between 2% and 4%, with the earlier shakeout on AI investment and valuation concerns taking a back seat for now."

"With the economic data which has been released of late having been dated due to the government shutdown and therefore of little use in gauging the current backdrop, investors have turned to comments by Federal Reserve officials instead."

"These have for the most part been dovish, leading to a more than 80% likelihood of an interest rate cut by the Fed in December, with several more anticipated next year."

On the equities front, shares in Puma surged by 13% on a report that China's Anta Sports was mulling a bid for the German sportswear and equipment maker.

Reporting by Frank Prenesti for Sharecast.com