European markets lifted as investors hopeful of US interest rate cuts
London’s FTSE 100 gained 49.92 points, or 0.61%, to close at 8,171.12, with airlines and miners among the biggest risers of the day.
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Your support makes all the difference.European financial markets were given a lift on Wednesday as fresh service sector data helped raise hopes that interest rate cuts are on the horizon in the US.
London’s FTSE 100 gained 49.92 points, or 0.61%, to close at 8,171.12, with airlines and miners among the biggest risers of the day.
Over in Paris, the Cac 40 closed 1.19% higher and in Frankfurt, the Dax was up 1.24%.
The stronger session came alongside new survey data showing that growth in the UK services sector slowed last month to the lowest level since November.
The survey from S&P Global is watched closely by Bank of England policymakers, who have repeatedly cautioned over inflationary pressures lingering in the sector.
And across the pond, a separate data release showed that the US services sector contracted for the first time since May 2020.
Further signs of activity cooling in the world’s largest economy could “stoke up expectations for a rate cut from the Federal Reserve”, said Mark Crouch, an analyst for eToro.
“Unless inflation heats up, the Fed could well be shaken out of its wait-and-see stance in the near future.”
It was nonetheless a mixed start to trading for top US indices, with the S&P 500 about 0.2% higher and Dow Jones 0.2% lower by the time European markets closed.
The pound jumped about 0.6% against the US dollar at 1.276, and rose 0.1% against the euro at 1.182.
In company news, Topps Tiles said its sales fell by a tenth in the latest quarter as it continued to see demand wane for home repairs and renovation projects.
The company said that improvements in the wider economy had given it some confidence in sales recovering, but that it was also taking steps to boost spending among its customers. Shares in Topps Tiles closed 2.7% lower.
Shares in Cairn Homes were given a boost after the company told investors it had a “very strong spring sales season” for first-time buyer homes, leading to a 66% surge in half-year revenues.
It also announced it was commencing a 45 million euro (£38 million) share buyback programme. Shares in Cairn Homes were 8% higher at the end of the day.
The biggest risers on the FTSE 100 were IAG, up 9.05p to 173.35p, easyJet, up 18.7p to 462.9p, Fresnillo, up 22.5p to 574p, Barclays, up 7.4p to 218.15p, and Burberry, up 29.6p to 877.2p.
The biggest fallers on the FTSE 100 were JD Sports, down 4.7p to 112.9p, 3i Group, down 37p to 3,008p, Hikma Pharmaceuticals, down 22p to 1,823p, B&M European, down 3.7p to 435.9p, and Shell, down 18.5p to 2,851p.