By Holly Ellyatt
Copyright cnbc
LONDON — European stocks are expected to open higher on Thursday, as traders evaluate the U.S. Federal Reserve’s rate cut on Wednesday.
The U.K.’s FTSE index is seen opening 0.18% higher, Germany’s DAX up 0.65% France’s CAC 40 up 0.37% and Italy’s FTSE MIB up 0.31%, according to data from IG.
Global markets are assessing the Fed’s decision to cut its benchmark overnight lending rate by 25 basis points on Wednesday.
In an 11-to-1 vote signaling less dissent than Wall Street had anticipated, the Federal Open Market Committee’s decision put the overnight funds rate in a range between 4.00%-4.25%
During a press conference following the decision, Fed Chair Jerome Powell put a damper on investor hopes that the central bank would be on a lengthy rate-cutting path this year, as he called the latest cut “risk management.”
Policymakers are predicting two more reductions this year, but just one in 2026, while traders had priced in two to three more trims next year.
Asia-Pacific markets traded mixed overnight. Japan’s benchmark Nikkei 225 rose 1.13% to a fresh record Thursday, led by gains in the real estate and technology sectors.
In Europe, the Bank of England is due to announce its latest interest rate decision on Thursday. The central bank is expected to keep rates on hold, at 4%.
— CNBC’s Jeff cox contributed to this market report.
