FX.co ★ European Stocks Rise

On Thursday, the STOXX 50 increased by 0.7% and the STOXX 600 saw a rise of 0.5% as market participants processed the recent decision by the Federal Reserve. The central bank reduced the federal funds rate by 25 basis points, a move that was largely anticipated, and indicated the potential for an additional 50 basis points of cuts by year's end. However, Federal Reserve Chair Jerome Powell clarified that this should not be interpreted as the beginning of a new easing cycle. Meanwhile, the Bank of England is expected to maintain its current borrowing costs in its forthcoming monetary policy announcement later today. In corporate news, strong gains were reported by companies such as SAP (up 2.3%), ASML Holding (up 2%), Linde (up 1.8%), Siemens (up 1.3%), and Schneider Electric (up 2.2%). The banking sector also performed well, with Banco Santander rising by 2.1%, UniCredit by 1%, Intesa Sanpaolo by 0.9%, and BNP Paribas by 1.1%.