European Shares Climb After Swiss Rate Cut and BoE Decision

European shares saw a significant rise following a rate cut by the Swiss National Bank and a crucial decision by the Bank of England. The combination of these actions boosted market confidence, leading to increased investor optimism and positive momentum across European markets. The Swiss rate cut was unexpected, adding to the market's bullish response, while the Bank of England's decision provided additional support, creating a favorable environment for European equities.

Summary:

• Companies
• ASMI jumps on brokerage upgrade
• SNB cuts rates by 25 bps
• Norwegian and British c.bank hold rates
• STOXX 600 up 0.9%

Boston Brand Media brings you the latest news - European shares rose on Thursday with widespread gains, reflecting a globally positive sentiment, while British, Swiss, and Norwegian stocks drew attention after their central bank decisions. The pan-European STOXX 600 (.STOXX) closed 0.9% higher, reaching a one-week peak, driven by a 1.8% increase in technology stocks (.SX8P). Additionally, real estate stocks (.SX8P) contributed to the uptick, climbing 1.7%.

ASM International (ASMI) led the tech index, soaring 5.3% after Morgan Stanley upgraded the semiconductor equipment manufacturer to "overweight" from "equal-weight." Global sentiment was further boosted as U.S. equities continued their upward trend, driven by chip designer Nvidia (NVDA.O) and as investors evaluated interest rate decisions from three European central banks. Switzerland's benchmark index (.SSMI) rose nearly 0.6% following the Swiss National Bank's decision to cut interest rates by 25 basis points to 1.25%, solidifying its role in the global policy easing cycle.

"The surprise rate cut, the second since March, was justified by a decline in inflation. However, this move was aimed at influencing the FX market," stated Kathleen Brooks, research director at XTB. "The risk is that a strong currency could lead to deflation and negatively affect exports."

In contrast, Norway's central bank chose to maintain its key policy interest rate at a 16-year high of 4.50%, indicating that a cut is anticipated in 2025. Norwegian stocks (.OSEAX) gained 0.4%.

The UK's FTSE 100 (.FTSE) climbed 0.8% after the Bank of England maintained its main interest rate, with the possibility of a future rate cut becoming more likely as some policymakers described their stance as "finely balanced."

Boston Brand Media also found that in economic data, German producer prices decreased slightly more than expected in May, while preliminary estimates indicated a 0.3% increase in consumer confidence in the euro zone for June.

Evotec (EVTG.DE) surged 13.9%, leading the STOXX 600, following a media report that the German biotech firm is in talks with advisers after being identified as a potential takeover target.

Millennium BPC (BCP.LS) surged 8.3% after Jefferies upgraded the Portuguese bank's rating to "buy."

Danone (DANO.PA) fell 2.5% after the French food group failed to provide an upgraded guidance in its medium-term targets, despite planning an expansion into health and medical nutrition. The stock was the lowest performer in France's CAC 40 (.FCHI) index, which rose 1.3%.

Tate & Lyle (TATE.L) dropped 9% after the British food ingredients maker announced its acquisition of U.S.-based CP Kelco for $1.8 billion from J.M. Huber Corp. Its shares were also trading ex-dividend.

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Source: Reuters‍