Europe open: Stoxx up on Fed rate cut bets

13th Sep 2024 07:54

(Sharecast News) - European shares opened higher on Friday as the betting increased on a larger-than-expected US interest rate cut in US, a day after the European Central Bank trimmed its benchmark.

The pan-regional Stoxx 600 index was up 0.43% to 514.28. Former head of the New York Federal Reserve Bill Dudley said there was a "strong case" for a 50 basis point cut.

On Thursday the European Central Bank cut rates as expected - its second of the year - by 25 basis points and bringing its key rate to 3.5%.

In equity news, shares in Stellantis were up even as the automaker said it was suspending production of electric Fiat 500 model on weak demand.

Vodafone gained despite Britain's competition regulator ruling that its planned £15bn merger with Three would lead to higher prices for customers.

French payment group Worldline slumped after the company announced the departure of its chief executive Gilles Grapinet and cut its 2024 revenue and core earnings guidance.

Reporting by Frank Prenesti for Sharecast.com