Investment accounts
Adult accounts
Child accounts
Choosing Fidelity
Choosing Fidelity
Why invest with us Current offers Fees and charges Open an account Transfer investments
Financial advice & support
Fidelity’s Services
Fidelity’s Services
Financial advice Retirement Wealth Management Investor Centre (London) Bereavement
Guidance and tools
Guidance and tools
Choosing investments Choosing accounts ISA calculator Retirement calculators
Share dealing
Choose your shares
Tools and information
Tools and information
Share prices and markets Chart and compare shares Stock market news Shareholder perks IPOs and placings
Pensions & retirement
Pensions, tax & tools
Saving for retirement
Approaching / In retirement
Approaching / In retirement
Speak to a specialist Creating a retirement plan Taking tax-free cash Pension drawdown Annuities Investing in retirement Investment Pathways
Europe midday: Stocks jump on ECB rate-cut hopes
(Sharecast News) - The Stoxx 600 index was up 1% on Friday as investor optimism surrounding interest-rate cuts in Europe prompted a return in risk appetite. "Concerns over the likely delay to the Fed's first rate cut looks to have eased for now despite Wednesday's higher-than-expected inflation reading. Instead, traders in Europe can look towards the projected ECB and BoE June rate cuts for bullish inspiration," said Joshua Mahony, chief market analyst at Scope Markets.
By 1230 CEST, the pan-European index was 5.02 points higher at 509.57, with gains of 0.9% or more seen across London, Milan, Madrid, Frankfurt and Paris.
Rate-setters in Frankfurt stood pat on rates on Thursday, but said that it would be appropriate to lower interest rates at its next meeting in June if its next set of projections increased their confidence that inflation was headed lower. The European Central Bank said gauges of underlying inflation were "easing" and wage increases "gradually moderating".
"The ECB made it quite clear that absent any major surprise on the disinflationary process and in its upcoming forecast update, rates will be cut at the next policy meeting in June," said Nicola Nobile, chief Italy economist at Oxford Economics.
"What happens after June, is particularly uncertain. But our expectation is still that the ECB will embark on a of a series of cuts, justified by a lower inflation forecast than consensus."
In economic data, UK GDP grew 0.1% in February following 0.3% growth the month before, in line with consensus expectations. January's figure was revised up from a previous estimate of 0.2%. growth. The figures suggested GDP did not contract in the quarter between January and March, raising hopes that a recession is over. This follows a contraction in the third and final quarters of 2023.
Meanwhile, German inflation fell in March, matching the lowest level since mid-2021, according to secondary estimates released on Friday. The annual rate of inflation was 2.3% last month, in line with the preliminary estimate and analysts' estimates. This was down from 2.7% in February and 3.1% in January, matching the same level as November, which was the lowest reading seen since June 2021.
Market movers
UK housebuilders were performing well after positive broker commentary. JPMorgan said in a research note that it was taking a more positive stance on the sector this year, "as we see scope for likely positive sentiment/newsflow from the upcoming UK election (with housing expected to be a key focus) before positioning for a recovery in 2025E, likely aided by rate cuts".
Meanwhile, RBC Capital Markets upgraded its rating on Taylor Wimpey to 'outperform', saying the business "has the wind behind its sales, and we like the cut of its jib". Sector peers Persimmon, Redrow and Barratt Developments were also putting in decent gains.
Mining stocks in London were also providing a lift, as commodity prices continued to rise. Gold prices were up 1.8% at new record highs, while silver gained 3.4% and copper rose 2.3%. Rio Tinto, Antofagasta, Anglo American and Glencore all rose strongly.
German drug company Evotec surged 6% after Deutsche Bank analysts upgraded the stock from 'hold' to 'buy', forecasting strong earnings growth in 2024.
French bank Societe Generale was a high riser, jumping 5% a day after announcing a deal to sell its professional equipment financing business to BPCE for €1.1bn.
Share this article
Related Sharecast Articles
Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.
Award-winning online share dealing
Search, compare and select from thousands of shares.
Expert insights into investing your money
Our team of experts explore the world of share dealing.
Policies and important information
Accessibility | Conflicts of interest statement | Consumer Duty Target Market | Consumer Duty Value Assessment Statement | Cookie policy | Diversity and Inclusion | Doing Business with Fidelity | Fidelity gender pay report | Investing in Fidelity funds | Legal information | Modern slavery | Mutual respect policy | Privacy statement | Remuneration policy | Security | Statutory and Regulatory disclosures | Whistleblowing policy
Please remember that past performance is not necessarily a guide to future performance, the performance of investments is not guaranteed, and the value of your investments can go down as well as up, so you may get back less than you invest. When investments have particular tax features, these will depend on your personal circumstances and tax rules may change in the future. This website does not contain any personal recommendations for a particular course of action, service or product. You should regularly review your investment objectives and choices and, if you are unsure whether an investment is suitable for you, you should contact an authorised financial adviser. Before opening an account, please read the ‘Doing Business with Fidelity’ document which incorporates our client terms. Prior to investing into a fund, please read the relevant key information document which contains important information about the fund.
This website is issued by Financial Administration Services Limited, which is authorised and regulated by the Financial Conduct Authority (FCA) (FCA Register number 122169) and registered in England and Wales under company number 1629709 whose registered address is Beech Gate, Millfield Lane, Lower Kingswood, Tadworth, Surrey, KT20 6RP.