European shares advance on rate optimism; UK elections in focus
2024.07.04 03:43
(Reuters) – European shares climbed on Thursday boosted by optimism on interest rate cuts by the Federal Reserve after weak U.S. data, while London markets gained as voting began in the UK with opinion polls predicting a historic win for the Labour party.
The pan-European index rose 0.3% by 0710 GMT, led by gains in the banking sector.
Automobiles added 0.8%, mainly driven by German automotive supplier Continental jumping as much as 9.6%.
The UK’s 100FTSE> advanced 0.5% as markets waited to see just how large a majority the Labour Party might get.
Weak U.S. data boosted sentiment on rate cuts as first-time applications for U.S. unemployment benefits increased last week, indicating a cooling labour market.
German industrial orders fell unexpectedly in May, declining by 1.6% on the previous month on a seasonally and calendar adjusted basis.
Among other movers, Roche dropped 2.3% after it announced plans to halt a trial for its experimental lung cancer drug due to lackluster results.
Sweden’s Ericsson (BS:) slipped 1.5% after the telecoms equipment maker recorded another impairment charge of 11.4 billion Swedish crowns ($1.09 billion) in the second quarter of 2024.
