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STOXX 600 up 0.7
Sept 19 Reuters European stocks jumped on Thursday after the U.S. Federal Reserve delivered a 50basispoint rate cut and flagged that further easing would be measured, raising hopes of a soft landing for the American economy.
The continentwide STOXX 600 index was up 0.7 at 518.24 points, hitting its highest levels in more than two weeks.
Miners led the gains among sectors, with a 3 jump and were set to log their best day this year, after prices of most base metals rose with the longawaited Fed rate cut and with bets of more stimulus in top metals consumer China.
Shares of ratesensitive real estate, technology firms and banks climbed between 0.5 and 1.3, while telecom and utilities fell 0.7 each.
The U.S. central bank kicked off its monetaryeasing cycle on Wednesday with a jumbo reduction that brought the benchmark policy rate to 4.755.00 range.
Fed Chair Jerome Powell said this was meant to show policymakers39; commitment to sustaining a low unemployment rate now that inflation has eased.
The U.S. may have experienced whipsaw price action on the back of yesterday39;s Fed rate cut, but there has been a straightforward welcome to the Fed39;s dovish leap into its rate cutting cycle in Asia and Europe, said Kathleen Brooks, research director at XTB.
Even though the Fed was more dovish than expected and downwardly revised their expectations…