European Shares Climb On Fed Rate Cut Bets

European stocks advanced on Friday amid expectations that the Federal Reserve may announce two rate cuts next year to support growth.

Investors shrugged official data showing that U.K. retail sales declined unexpectedly in October as a result of rising interest rates.

Retail sales logged a 0.3 percent monthly drop but slower than the September’s revised 1.1 percent decrease. However, the fall confounded forecast of 0.3 percent gain.

The eurozone final HICP data for October is slated for release later in the day, with investors looking for further proof of easing price pressures across the board.

Inflation is forecast to ease to 2.9 percent, as initially estimated, from 4.3 percent in September.

The pan European STOXX 600 was up 0.8 percent at 454.83 and eyed a weekly rise of 2.5 percent.

The German DAX rose 0.6 percent, while France’s CAC 40 and the U.K.’s FTSE 100 both added around 0.8 percent.

Italy’s top insurer Generali fell nearly 2 percent after a warning that it is seeing weaker demand amid signs of a global economic slowdown.

Swedish auto maker Volvo Cars plunged 11 percent after its majority shareholder, China’s Geely, launched a sale of 100 million shares at a deep discount to the previous day’s closing price.

FirstGroup rose nearly 3 percent. The British transport operator has announced partnership with Hitachi ZeroCarbon Limited as part of the company’s decarbonization program.

Hill & Smith added 2.5 percent. The engineering and construction company has acquired the business and assets of United Fiberglass from a charitable foundation for $14 million in cash.

Drug major AstraZeneca rose 1.4 percent after the U.S.FDA approved its Truqap (capivasertib) in combination with Faslodex (fulvestrant) to treat patients with advanced hormone receptor or HR-positive breast cancer.

London Stock Exchange Group fell over 1 percent after saying it remains on track to achieve guidance for 2023.

China-related LVMH and Kering rose 0.7 percent and 1.7 percent, respectively helped by the apparent easing of tensions between the United States and China.

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