Europe stocks near record as markets expect first ECB rate cut since 2019
Istanbul, June 6 (Hibya) - European stocks showed resilience on Thursday, with traders anticipating a potential boost to the euro area's economy as the European Central Bank is expected to cut borrowing costs for the first time since September 2019. This move is a positive step towards stimulating economic growth and market stability.
The pan-European Stoxx 600 approached a record intraday high, up 0.7 percent at around 11:40 a.m. London time. All significant bourses and the vast majority of sectors were trading in the green, with tech stocks jumping 1.6 percent while telecoms fell 0.2 percent.
Healthcare stocks, a sector showing remarkable resilience, added 1 percent. Danish pharmaceuticals giant Novo Nordisk, a shining example of market success, climbed as much as 3.9 percent to hit a fresh record high amid continued demand for its blockbuster Wegovy weight loss drugs. Zealand Pharma, another company with a promising future, jumped to the top of the benchmark, up 5.5 percent.
Although the ECB is widely expected to cut interest rates when policymakers meet, investors will watch closely to see whether a slightly higher-than-expected euro zone inflation print released last Friday affects the central bank’s decision-making.
In any case, the ECB meeting has fired up markets elsewhere; Asia-Pacific stocks rose overnight as investors awaited the central bank’s rate cut, while softer U.S. labour market data on Wednesday fueled hopes that the U.S. Federal Reserve might follow suit, boosting market sentiment.
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