Stocks Continue to Rise as Fed Speakers Come into Focus – Europe Market Wrap

Stocks rose in response to positive profit reports and US statistics that bolstered the case for interest rate reductions. On Friday, there will be a number of speakers from the Fed.

With a 0.9% rise, the Stoxx 600 was on track for its biggest weekly increase in almost three months. S&P 500 contracts increased by 0.4% following the index’s near-all-time high of less than 1%. The Dollar and Treasuries remained unchanged, but the Pound strengthened following reports that the UK economy was emerging from a brief recession. (UK GDP QoQ Prelim Actual 0.6% (Forecast 0.4%, Previous -0.3%).

The case for rate cuts was strengthened by higher-than-expected applications for US unemployment benefits on Thursday, which gave the market a further boost. The rise that had been driven by tech giants is being broadened by the so-called value and cyclical sectors, as traders await a significant US inflation print due next week.

Oil continued to rise into the third day as important technical levels offered a floor for declines.