Europe open: Stoxx up as investors eye UK election

4th Jul 2024 08:56

(Sharecast News) - European shares opened higher as investors bet on a September rate cut in the US and also looked ahead to the UK General Election, widely expected to see the ruling Conservatives kicked out of office after 14 years in power.

The pan-regional Stoxx 600 index was up 0.3% in early deals at 516.22. Britain's FTSE 100 was up 0.51% and France's CAC 40 rose 0.62% ahead of the second round of voting in national elections on Sunday.

Trading was expected to be subdued with US markets closed for the Independence Day holiday.

Polling stations have opened in Britain where the main opposition Labour Party, led by Keir Starmer, is expected to win by a landslide, although the size of any majority fluctuates wildly depending on which forecast you read.

In economic news, German factory orders posted a shock 1.6% fall in May against a forecast rise of 0.5%.

On the equities front, Smith and Nephew surged as Swedish activist investor Cevian Capital purchased a 5% stake in the medical equipment manufacturer.

Reporting by Frank Prenesti for Sharecast.com