European stocks interest rate cuts
Frankfurt (dpa) — European stocks turned in a mixed performance on Thursday, with UK stocks underperforming after the Bank of England reduced its benchmark interest rate for the fifth time in a year as domestic and geopolitical risks weigh on economic activity.
The Monetary Policy Committee voted 5-4 to cut the bank rate by 25 basis points to 4.00%. The fifth cut since last August took the rate to the lowest since early 2023.
In economic news, German exports grew for the first time in three months in June despite falling shipments to the US, data from the Federal Statistics Office revealed. Exports advanced 0.8% on a monthly basis in June, reversing a fall of 1.4% in May.
A separate report revealed that German industrial output decreased 1.9% on a monthly basis in June, bigger than May’s revised 0.1% drop and also worse than economists’ forecast of 0.4% fall.
Elsewhere, UK house prices increased by more-than-expected 0.4% in July from June, according to data from the mortgage lender Halifax.
While the UK’s FTSE 100 Index slid by 0.7%, the French CAC 40 Index advanced by 1.0% and the German DAX Index jumped by 1.1%.
A.P. Moller-Maersk shares rallied over 4%. The Danish shipping group raised its financial outlook for 2025 after posting strong second-quarter results.
Valneva, a specialty vaccine company, surged 3.3% after the FDA removed its recommended pause on the use of IXCHIQ. Consumer goods and adhesives maker Henkel jumped 2.9% after lifting its full-year margin forecast.
Technology giant Siemens shot up 3.7% after reporting better-than-expected revenue and order intake in its third quarter. Insurer Allianz soared 4.1% after reporting better-than-expected second quarter earnings and affirming its full-year operating profit outlook.
On the other hand, defence firm Rheinmetall plunged 8.0% after reporting lower-than-expected second-quarter sales. Deutsche Telekom also tumbled by 5.0 after reporting weaker second quarter results in its domestic market.
British advertising giant WPP gave up 2.6% on weak first-half results, with operating profit plunging 48%.
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