European stocks saw further increases on Wednesday, with both the STOXX 50 and the STOXX 600 experiencing gains of 0.5% and 0.4%, respectively. This upward trend was fueled by growing optimism regarding potential interest rate cuts by the Federal Reserve anticipated for next week and later in the year. The European Central Bank (ECB) is predicted to maintain the current borrowing costs in their upcoming meeting, but updated economic forecasts and future policy guidance will be scrutinized closely.
On the geopolitical front, heightened attention was drawn to the Middle East and Eastern Europe. Israel conducted airstrikes on Hamas positions in Qatar, while Poland successfully intercepted drones during a Russian offensive against Ukraine. Simultaneously, reports emerged indicating that U.S. President Trump has urged the European Union to implement 100% tariffs on India and China in response to their acquisition of Russian oil.
In France, President Emmanuel Macron made a significant cabinet appointment, naming Sébastien Lecornu as prime minister. In the corporate sector, positive projections from Oracle buoyed the global technology industry, with SAP's stock climbing 1.7% and ASML Holding's shares increasing by 0.9%. Inditex also saw impressive gains, with its stock surging 6.7% following a report of increased sales from August 1 to September 8.
