European Shares Surge with Banking and Mining Gains Amid Fed Rate-Cut Speculation
European shares are on track to achieve notable weekly gains, driven by surges in banking and mining sectors. The STOXX 600 index reached new heights, and Eurozone banks saw significant upticks, with Raiffeisen gaining after reports of potential EU sanctions adjustments. Fed rate-cut expectations further influenced market dynamics.
European shares are poised for significant weekly gains, bolstered by a strong performance from banks and miners, as rising expectations of Federal Reserve rate cuts pushed the STOXX 600 to record levels.
The STOXX 600 index rose by 0.3% to 569.6 points, marking its most impressive week since late April. Eurozone banks surged 1%, with Raiffeisen seeing a notable 7.7% increase following reports of possible EU sanctions modifications concerning Russian oligarch Oleg Deripaska to benefit the Austrian institution. Meanwhile, ABN Amro appreciated by 2.6% after a Goldman Sachs rating upgrade from 'sell' to 'buy'.
The mining sector followed suit, climbing 1.3% in response to rising base metal prices. As the US government shutdown persists, an anticipated jobs report is likely to be delayed, further amplifying trader confidence in a near-certain Federal Reserve rate cut by month's end.
(With inputs from agencies.)
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