Oct 10 2024: European stocks nudged higher on Thursday, mirroring gains in Asian markets fueled by optimism over potential stimulus measures from China. Investors are also awaiting U.S. inflation data for further signals on the Federal Reserve’s interest rate trajectory.
As of 0713 GMT, the pan-European STOXX 600 index rose 0.1%, with healthcare and telecom sectors leading the gains, while technology stocks faced some pressure. Wall Street’s recent record highs also provided a positive backdrop after the Fed’s September meeting minutes revealed strong support for a half-point rate cut.
Market attention is now focused on U.S. consumer price data, expected later in the day, for insights into potential future rate cuts. Traders are betting on an 85% chance of a smaller 25-basis point cut next month.
In corporate news, GSK shares surged 6% after the British pharmaceutical company agreed to pay up to $2.2 billion to settle U.S. lawsuits linked to claims that its discontinued heartburn drug Zantac caused cancer, a figure lower than some analysts had predicted.
On the downside, BMW shares dropped 0.7% after the automaker reported a decline in third-quarter sales, impacted by weaker demand in China and delivery halts. Meanwhile, Swiss fragrance maker Givaudan saw its stock rise 1.8%, buoyed by better-than-expected third-quarter sales.
