London, June 6, 2024 - European stocks experienced a boost on Thursday following the European Central Bank's (ECB) interest rate cut.
The ECB's eighth rate cut in just over a year brought Euro zone borrowing costs down to 2%. Investors are now focused on signals from Christine Lagarde regarding future monetary policy, considering the uncertainty surrounding potential U.S. trade deals.
German data showed industrial orders unexpectedly increased in April due to strong domestic demand. The Stoxx 600 index rose for a third consecutive day. This was also supported by a new German tax relief package and Wall Street's approach to a 'bull market'.
The euro and regional government bonds showed minimal movement as traders digested the ECB's decision. The dollar remained steady after a previous session drop. The yield on the 30-year U.S. Treasury bond fell below 4.9%, and the 10-year yield dropped to 4.385%.
Trump's doubling of tariffs on steel and aluminum imports took effect on Wednesday, impacting Canada and Mexico. Japan's key trade negotiator was in the U.S. for talks. Germany's chancellor also met with Trump in Washington.
MSCI's Asia-Pacific shares index jumped 0.7% overnight. South Korea's Kospi touched an 11-month high. The dollar index rose 0.1% to 98.8. Gold prices decreased slightly to $3,374 per ounce, while Brent crude increased to just over $65 a barrel.