European stocks demonstrated a general increase on Thursday, with the majority of major markets continuing their upward trend. This stemmed from increased optimism regarding potential interest rate cuts by numerous central banks, although geopolitical tensions did somewhat limit the markets' gains.
American data showed an unexpected rise in U.S. unemployment claims for the week ending August 26th, further bolstering hopes for a rate cut from the Federal Reserve in the near future.
The Bank of England held their key policy rate steady for the sixth consecutive meeting, with the Monetary Policy Committee deciding the Bank Rate should remain at 5.25%. This marks the highest rate since early 2008. While the majority of members agreed with this decision, members Swati Dhingra and Dave Ramsden argued for a quarter-point reduction, suggesting a shift in policy to accommodate lags in transmissions.
European markets ended positively overall, with some exceptions such as Belgium and Spain. The UK's FTSE 100, Germany's DAX, and France's CAC 40 all saw gains. Notably, the Russian market remained closed for Victory Day holiday and the Swiss market was closed for Ascension Day.
In the business sphere, companies such as Anglo American Plc and JD Sports Fashion enjoyed noticeable growth. Conversely, shares in the 3i Group and HSBC Holdings declined. Other prominent companies such as Ocado Group, RightMove, RS Group, and Taylor Wimpey also experienced gains.
In Germany, Puma and Deutsche Post saw share increases, while Mercedes-Benz and Allianz suffered losses. Meanwhile in France, STMicroElectronics experienced a significant climb, although luxury goods conglomerates LVMH, Kering, and Hermes International reported lower figures.
Moreover, Spanish bank Sabadell saw a 3.2% increase in shares after BBVA presented a $13.11 billion hostile takeover offer to its shareholders. Additionally, Italian payments group Nexi saw a surge of 6.5% following impressive first-quarter results and the announcement of a share buyback program.
