Europe open: Shares up as rate cut hopes persist
European shares opened higher on Thursday as investors continued to bet on cuts in interest rates next year.
The pan-regional Stoxx 600 index was up 0.27% to 479.93 with all major bourses higher. In the year to date the Stoxx has gained 12.95%.
Wall Street stocks closed higher on Wednesday as the S&P 500 fell just short of registering a fresh all-time high.
“The US bond and stocks extended their rally on the back of soft US economic data and another strong US bond auction. The US dollar fell sharply against most majors, allowing the euro, sterling, and the yen to extend gains into the year end,” said Swissquote Bank analyst Ipek Ozkardeskaya.
“The rally in the sovereign space looks overdone, hence the rally in stocks and the selloff in US dollar looks overstretched; there is a rising risk of a wild correction when the euphoria comes to an end.”
In equity news Vestas Wind Systems gained again as the Danish wind turbine-maker won received a 1,089 MW order in the US.
Reporting by Frank Prenesti for Sharecast.com