STOXX 600 closes at record high on earnings, rate cut optimism

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STOXX 600 closes at record high on earnings, rate cut optimism

-Europe's main stock index closed at a record high on Friday, on track for its biggest weekly gain since late January, as risk appetite was bolstered by growing bets on interest rate cuts in the region and a strong earnings season.European shares have resumed their record-breaking rally, with the STOXX 600 notching a 3% weekly gain, after investors took a breather in April.

Minutes from the ECB's April policy meeting showed that policymakers favoured kicking off the monetary policy easing cycle in June, while remaining confident that inflation is on track to fall back to 2% next year. Retailers added 1.5%, with Zalando rising 3.3% after Berenberg upgraded the German online retailer to "buy" from "hold".) and Sabadell were up 1.3% and 0.5%, respectively, as investors assessed the developments around the first hostile banking takeover bid in Spain since the 1980s.) struck a licensing deal of up to $1.2 billion with French drugmaker for its COVID-19 vaccine in exchange for a stake that valued the U.S. biotech firm at double its current market capitalisation.

 

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