(Bloomberg) — European stocks rose as key elections held center stage and investors grew more optimistic about Federal Reserve interest-rate cuts following US economic data that supported the case for easing.
Most Read from Bloomberg
France’s CAC 40 benchmark index advanced for a second day in the buildup to this weekend’s final round of voting in snap parliamentary elections. The gauge extended gains as polls suggested Marine Le Pen’s National Rally and its allies will fall well short of a majority. Voting is underway in the UK’s general election, with the first official exit poll expected soon after 10 p.m. local time.
Europe’s regional Stoxx 600 index climbed 0.6%, with banks the leading gainers. After the close, Stoxx 50 futures held close to the highest since mid-June. US equity futures contracts were little changed, with cash markets shut for Independence Day, after the S&P 500 and Nasdaq 100 set fresh record highs on Wednesday. A gauge of dollar strength dropped for a third day. The Brazilian real strengthened for a second day on the prospect of cuts in government spending.
Global stocks are on track for their longest stretch of weekly gains since March, driven by a series of soft US economic data, which has revived hopes for a September rate cut. Reports on Wednesday showed the American services sector contracted at the fastest pace in four years, while the labor market saw further signs of softening before Friday’s key jobs figures.
“With the ISM services yesterday falling to 48.8, the weakest since the pandemic and job claims deteriorating, ultimately the negative data is being seen as positive for markets,” said Justin Onuekwusi, chief investment officer at St James Place. “It feels like September is the date everyone is now looking at.”
In individual stock moves, Continental AG rallied after the tiremaker flagged strong growth in China. Pandora A/S fell after an analyst highlighted the raw-material cost pressures confronting the Danish charm-bracelet maker.
Thursday’s broader gains for stocks were stronger in Asia, where an MSCI…
..
