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Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Europe open: Shares up as investors mull Powell comments on rate cuts

(Sharecast News) - European shares opened higher on Monday as investors digested comments from US Federal Reserve chairman Jerome Powell about the pace of rate cuts this year. The pan-regional Stoxx 600 index was up 0.20% in early deals at 485 with all major Continental bourses also higher.

In an interview overnight, Powell warned against moving too soon on interest rates before inflation was fully tamed.

"The danger of moving too soon is that the job's not quite done, and that the really good readings we've had for the last six months somehow turn out not to be a true indicator of where inflation's heading," he said.

"We don't think that's the case. But the prudent thing to do is to, is to just give it some time and see that the data continue to confirm that inflation is moving down to 2% in a sustainable way."

In equity news, Vodafone shares fell after reporting weaker service revenues in Germany and Italy.

Delivery Hero soared after posting better-than-expected results.

Reporting by Frank Prenesti for Sharecast.com

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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.

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