European stocks rose on renewed efforts to negotiate a peace deal between Ukraine and Russia. Traders also parsed through the latest batch of US economic data for clues on the Federal Reserve’s next move.
The Stoxx Europe 600 Index closed up 0.9%, finishing near the session-high as gains on Wall Street added to earlier optimism that a peace deal can be reached. Ukrainian President Volodymyr Zelenskiy, however, said talks with the US were still ongoing.
Construction and retail shares outperformed, while energy and technology sectors lagged behind. Kingfisher Plc jumped 6% after the home-improvement company boosted profit guidance. ABN Amro Bank NV shares advanced 6.5% after the Dutch lender said it is planning to cut almost 20% of its workforce in a bid to boost profitability.
European stocks had gained on Monday following dovish comments by Fed officials, with Governor Christopher Waller saying he’s advocating for an interest-rate cut in December. Data on Tuesday showed US wholesale inflation picked up in September from a month earlier, reflecting higher energy and food costs. Private payrolls data pointed to a slowing labor market.
Money markets are pricing in about an 80% chance of a Fed rate cut in December, after the odds for further easing fluctuated in recent weeks.
“The Fed has a tradition of giving visibility to investors when it comes to interest rate decisions and the volatility that we are witnessing currently is a reflection of its absence,” said Raphael Thuin, head of capital market strategies at Tikehau Capital. “The lack of visibility on the Fed’s next move could be a big risk this year and for 2026 too.”
Among other individual stock moves, Beazley Plc shares fell 9.2%, the most in more than three months, after the insurer’s third-quarter sales come in below analysts’ expectations.
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With assistance from Sagarika Jaisinghani and Kwaku Gyasi.
This article was generated from an automated news agency feed without modifications to text.
