European Markets React to Anticipated ECB Rate Cut

As the European Central Bank (ECB) gears up for a crucial decision on its key interest rates, major stock markets across Europe have shown an upward trend. Market analysts predict a 25 basis points cut, sparking a wave of optimism among investors. This development comes alongside the release of significant economic data, including the United Kingdom's construction activity, Eurozone's retail sales, Switzerland's unemployment figures, and Lufthansa's fiscal 2024 fourth-quarter earnings report.

Stock Market Highlights

The DAX index saw a notable rise of 0.63%, with Heidelberg Materials leading the charge at a 17.52% increase. The FTSE 100 wasn't far behind, posting a 0.23% gain, thanks to Entain's 5.06% surge. Meanwhile, the CAC 40 advanced by 0.62%, with Stellantis climbing 3.39%. The Euro Stoxx 50 also enjoyed a 0.46% increase, highlighted by Bayerische Motoren Werke's impressive 4.30% jump at the opening bell.

Currency Movements

In the currency markets, the euro and the pound remained steady against the dollar, trading at $1.07976 and $1.29083, respectively, as of 8:58 am CET.