Posted By Global Banking and Finance Review
Posted on January 15, 2025
By Shashwat Chauhan and Pranav Kashyap
(Reuters) -European shares closed over 1% higher on Wednesday after an in-line inflation reading in the U.S. raised the chances of a second rate cut by the Federal Reserve this year.
The pan-European STOXX 600 jumped 1.3% to 515.02 points and snapped a three-day losing streak, and saw its best intraday percentage gain since Sept. 2024.
The rate-sensitive real-estate sector was the biggest boost to the benchmark index, surging 3.3%, while a 2% gain in financial stocks also provided support.
U.S. CPI rose at an annual rate of 2.9% in December, in line with expectations. Markets cheered the core inflation number that rose by 3.2%, however was below forecasts.
Traders now expect close to 40 basis points (bps) in rate cuts from the Fed this year, from around 30 bps before the inflation data. [MKTS/GLOB]
“Positive developments from U.S….
