European stocks catch a tailwind from US rate optimism
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EUROPEAN STOCKS CATCH A TAILWIND FROM US RATE OPTIMISM
European shares are heading for a modestly higher open, supported by a general sense of optimism that the U.S. economy is slowing enough to warrant at least one rate cut this year, but not slowing so much that it poses a problem.
Today might make for more subdued trading in Europe, given the Independence Day holiday in the United States and a sense of caution ahead of the general election in Britain - even if opinion polls point to what could be a historic win by the opposition Labour party.
STOXX 50 futures STXEc1 are up around 0.16%, while DAX FDXc1 and FTSE futures FFIc1 are up 0.2%. CAC 40 futures FCEc1 are having a bit of a pop higher, up 0.4%.
In Asia, stocks have hit a 27-month high, fuelled by growing optimism over U.S. rate cuts after PMI surveys showed service sector in the United States contracted in June, while private-sector employment growth was a touch below expectations.
Taking a look at companies news today, Swedish mobile telecoms equipment maker Ericsson ERICb.ST said late on Wednesday it will book a $1 billion impairment charge in Q2 - the second writedown on its $6.2 billion acquisition of cloud comms company Vonage in 2022. German tyre maker Continental CONG.DE said late on Wednesday a weak European auto parts market had hampered demand for its products, while over in France, voucher firm Pluxee PLX.PA has raised guidance again.
UK oilfield services company Wood Group WG.L said it had extended a "put up or shut up" deadline of July 31 for Sidara to make another offer, after rejecting three prior offers from the Dubai-based engineering and consulting group.
(Amanda Cooper)
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EARLIER ON LIVE MARKETS:
BETS MOUNT FOR US RATE CUT, UK POLITICAL SHAKE UP CLICK HERE
UK borrowing costs have risen more than their German peers https://reut.rs/3RS9eix
The UK's borrowing needs have soared and will stay high https://reut.rs/4cFJjma
GRAPHIC-UK election opinion polls https://reut.rs/3XCIXsi
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