European Stocks Climb On Low Interest-Rate Outlook

European stocks rose on Thursday in their first opportunity to react to the U.S. Federal Reserve decision, with key events on the horizon including a European Central Bank decision and the U.K. election.

European stocks rose on Thursday in their first opportunity to react to the U.S. Federal Reserve decision, with key events on the horizon including a European Central Bank decision and the U.K. election.

European stocks rose on Thursday in their first opportunity to react to the U.S. Federal Reserve decision, with key events on the horizon including a European Central Bank decision and the U.K. election.

The Stoxx Europe 600 increased 0.34% to 407.60, with banks and oil producers gaining ground.

The German DAX added 0.42% to 13202.31 and the French CAC 40 gained 0.4% to 5884.34.

The U.K. FTSE 100 increased 0.59% to 7258.85, as the country holds a general election. Polls show the Conservatives winning a plurality of the vote, but there is doubt as to whether they will win enough seats to secure a majority in Parliament.

After European stock markets had closed on Wednesday, the Fed released a so-called “dot plot” showing the central bank doesn’t expect to lift interest rates in 2020. Chairman Jerome Powell told reporters the bar was high to lifting interest rates.

Meanwhile, Christine Lagarde is due to preside over her first European Central Bank meeting as president. While no interest-rate change is expected, traders will be scrutinizing her comments at the press conference for clues on what the central bank may do in 2020.

Channel Tunnel operator Getlink fell 1.9% after reporting a decline in shuttle traffic during November, with truck traffic hurt by stockpiling during the previous month because of concerns over Brexit, and passenger traffic affected by U.K. election uncertainty.

Balfour Beatty shares rose 4% as the U.K.-based construction contractor said its order book will surpass £14 billion and that its profit from operations will be “slightly ahead” of expectations. Analysts at Liberum Capital said one positive was that the company’s Hong Kong joint venture hasn’t been negatively affected by civil unrest.

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