Investors now see ECB as almost certain to cut rates in June
European shares climbed to record-high levels on Thursday as a move by the Swiss central bank to cut rates and comments from the Bank of England that it heading in the same direction fuelled optimism among investors.
While the banks’ earnings have surged since the European Central Bank started to hike rates in July 2022 as it drove net interest income, investors have chosen to now focus on the likelihood of a reduction in borrowing costs boosting the economy. The FTSE 100 closed at its highest level since May 2023, boosted by a 4.5 per cent gain in the investment banking sector, while a near 1 per cent fall in the pound against the dollar also helped the exporter-heavy index.
Tritax Big Box jumped 2.7 per cent after the boards of the warehouse owner and UK Commercial Property said they had agreed on a £924 million . The basic resources index, which houses mining stocks, added 2.6 per cent, as prices of most metals climbed, with gold prices hitting an all-time high earlier in the session.
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