European stocks climb after hefty Fed cut; Next soars after outlook lift

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European stocks climb after hefty Fed cut; Next soars after outlook lift

Investing.com - European stock markets rose strongly Thursday as investors digested the aggressive start to the Federal Reserve’s easing campaign, ahead of the Bank of England’s latest policy-setting meeting.cut interest rates by 50 basis points on Wednesday, reducing its benchmark rate to a range of 4.75% to 5%, as the central bank aggressively started a rate-cut cycle to shore up the economy following a prolonged battle against surging inflation.

Additionally, the Fed members now see a further two cuts of 25 bps in 2024, compared with a prior estimate in June for just one cut. The decision to cut rates, for the first time since March 2020, so assertively may raise concerns about the strength of the US economy, but Fed Chair Jerome Powell attempted to quell these worries, stating that risks of higher inflation and a weakening labor market were now balanced.The BoE is expected to keep its benchmark rate unchanged at 5.0%, after cutting in August, with policymakers likely to reiterate their"careful" stance against easing too fast or too soon.came in at 2.

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