{"id":118982,"date":"2025-09-18T13:34:16","date_gmt":"2025-09-18T09:34:16","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=118982"},"modified":"2025-09-18T13:34:25","modified_gmt":"2025-09-18T09:34:25","slug":"european-stocks-gain-as-fed-rate-cut-lifts-sentiment","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/european-stocks-gain-as-fed-rate-cut-lifts-sentiment\/09\/18\/market-updates\/","title":{"rendered":"European Stocks Gain as Fed Rate Cut Lifts Sentiment"},"content":{"rendered":"\n<h3 class=\"wp-block-heading\"><\/h3>\n\n\n\n<p>European equities traded higher on Thursday, supported by a boost in risk appetite after the U.S. Federal Reserve delivered a widely anticipated interest rate cut and hinted at further easing later this year.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Market Performance<\/h4>\n\n\n\n<p>At 03:05 ET (07:05 GMT), the <strong>DAX index in Germany gained 0.9%<\/strong>, the <strong>CAC 40 in France rose 0.6%<\/strong>, while the <strong>FTSE 100 in the U.K. edged 0.1% lower<\/strong>. The gains mirrored the positive momentum in Asia, where Japan\u2019s <strong>Nikkei 225 hit a fresh record high<\/strong> following the Fed\u2019s policy decision.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Federal Reserve Policy Impact<\/h4>\n\n\n\n<p>The Fed reduced its benchmark interest rate by <strong>25 basis points to 4.00\u20134.25%<\/strong>, marking its first cut since December. Policymakers also projected <strong>two further cuts before year-end<\/strong> amid rising concerns about labor market softness. However, Chair Jerome Powell highlighted a \u201cchallenging situation\u201d with <strong>upside risks to inflation<\/strong> and <strong>downside risks to employment<\/strong>, underscoring a cautious stance.<\/p>\n\n\n\n<p>The decision reinforced optimism in equity markets, as lower U.S. rates are expected to stimulate economic activity while maintaining global liquidity.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Focus Shifts to Bank of England<\/h4>\n\n\n\n<p>Attention now turns to the <strong>Bank of England\u2019s policy meeting later in the day<\/strong>. Unlike the Fed, the BoE is expected to <strong>hold rates steady at 4%<\/strong>, following last month\u2019s cut\u2014its fifth since August 2024. Inflation in the U.K. held at <strong>3.8% in August<\/strong>, almost double the central bank\u2019s 2% target, a factor likely preventing further immediate easing.<\/p>\n\n\n\n<p>The <strong>Bank of Japan<\/strong> is also set to announce its decision on Friday, with expectations for unchanged policy amid political uncertainty.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Corporate Developments<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Next (LON:NXT)<\/strong> reported a strong rise in first-half profits, with <strong>international and online sales<\/strong> offsetting weaker in-store performance.<\/li>\n\n\n\n<li><strong>Renishaw (LON:RSW)<\/strong> posted record revenue and improved adjusted profit despite uneven demand across segments, maintaining a steady outlook.<\/li>\n\n\n\n<li><strong>Mars<\/strong> announced plans to invest <strong>\u20ac1 billion ($1.18 billion)<\/strong> in its EU operations by 2026, aimed at boosting manufacturing, sustainability, and innovation.<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>European equities traded higher on Thursday, supported by a boost in risk appetite after the U.S. Federal Reserve delivered a widely anticipated interest rate cut and hinted at further easing later this year. Market Performance At 03:05 ET (07:05 GMT), the DAX index in Germany gained 0.9%, the CAC 40 in France rose 0.6%, while &hellip;<\/p>\n","protected":false},"author":9,"featured_media":98251,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[38,36],"tags":[],"class_list":["post-118982","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-commodities-news","category-market-updates"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/118982","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=118982"}],"version-history":[{"count":1,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/118982\/revisions"}],"predecessor-version":[{"id":118983,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/118982\/revisions\/118983"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/98251"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=118982"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=118982"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=118982"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}