European stocks rose on Thursday, continuing the recent positive tone ahead of an expected interest rate cut from the Federal Reserve next week, with anticipation of the release of Eurozone retail sales data later in the session.
At 11:05 Saudi time, the DAX index in Germany rose by 0.8%, the CAC 40 index in France rose by 0.0%, while the FTSE 100 index in the United Kingdom rose by 0.1%.
Widespread expectations of a Federal Reserve interest rate cut next week
European stocks traded higher on Thursday, as market sentiment was boosted by strong expectations that the US Federal Reserve will ease monetary policy next week, following weaker-than-expected US economic data.
The ADP private sector payrolls report showed a slowdown in hiring, while the ISM services index indicated softer activity in the services sector. The remaining major economic data release this week will be the personal consumption expenditures (PCE) inflation report on Friday, which could have a greater impact on the Federal Reserve's policy outlook.
Traders estimate the chance of a 25 basis point interest rate cut on December 10 at around 90%, according to the CME FedWatch tool.
Watch for Eurozone retail sales data
In Europe, construction activity data for the Eurozone is due later in the session, but most attention will be on October's retail sales figures for clues about consumer health.
Retail sales in the Eurozone are expected to remain flat in October on a monthly basis, a slight improvement compared to the 0.1% decline recorded in the previous month.
The European Central Bank also meets later this month, but unlike the Fed, it is widely expected to leave interest rates unchanged at its final meeting of the year.
European Central Bank President Christine Lagarde stated on Wednesday that core inflation indicators are in line with the central bank's target and that inflation will remain close to the bank's 2% target in the coming months.
She added that forecasts from experts in the European system, to be released on December 18, will provide more insights into growth and inflation expectations.
Rio Tinto outlines new restructuring strategy
In the European corporate sector, Rio Tinto (LON:RIO) raised its 2025 copper production forecast while lowering its unit cost forecast, as part of a new restructuring strategy announced at the mining company’s 2025 Capital Markets Day.
SSP Group (LON:SSPG), a leading operator of food and beverage outlets at travel locations, announced on Thursday a resilient financial performance for fiscal year 2025, with revenue up 6% and underlying operating profit up 8.4%.
Frasers Group (LON:FRAS) maintained its annual profit guidance of £550 million-£600 million despite first-half adjusted earnings falling 2.8%, as the British sports and lifestyle retailer's chief executive, Michael Murray, warned that excess inventory continues to weigh on the industry, leading to increased promotional activity.
Aurubis (ETR:NAFG) net cash flow rose by about 30% in fiscal year 2024-25, reaching a three-year high, as the German multi-metal company proposed increasing its dividend.
Oil prices rose due to concerns about Russian supply.
Oil prices rose on Thursday after further attacks on Russian oil infrastructure raised threats to global supplies, as well as a lack of progress in diplomatic efforts to end the war in Ukraine.
Brent crude futures rose 0.4% to $62.92 a barrel, and U.S. West Texas Intermediate crude futures climbed 0.6% to $59.29 a barrel.
A Reuters report on Wednesday, citing sources, said Ukrainian forces struck the Druzhba pipeline in Russia's central Tambov region, reviving fears about possible disruptions to Russian oil exports.
Meanwhile, high-level peace talks between U.S. and Russian officials ended without a breakthrough earlier this week.
