European stock markets saw a modest uptick on Thursday, buoyed by optimism surrounding a potential breakthrough in the U.S. trade dispute and the Federal Reserve’s decision to hold interest rates steady.
The pan-European STOXX 600 index gained 0.3% as of 0707 GMT, with most regional indexes also experiencing gains, except for Spain, which saw a 0.4% decline.
Investor sentiment was lifted by U.S. President Donald Trump’s announcement on Truth Social, where he revealed plans to hold a news conference later in the day about a “major trade deal” with representatives of a “big, and highly respected” country. While Trump did not specify the nation involved, the New York Times, citing three sources familiar with the negotiations, reported that the deal could be with Britain.
This development comes ahead of scheduled talks between U.S. and Chinese trade representatives this weekend, further fueling hopes of de-escalation in trade tensions between the world’s two largest economies.
In a widely anticipated move, the U.S. Federal Reserve kept its interest rates unchanged overnight, signaling a cautious approach amid rising concerns over inflation and unemployment.
Investors are now turning their attention to the Bank of England’s policy meeting later today, where a quarter-point rate cut is expected.
On the corporate front, A.P. Moller-Maersk saw a 2.1% drop in its share price after the shipping giant reduced its global container market forecast for the year, citing growing economic and geopolitical uncertainties. However, the company maintained its profit outlook for the year.
Meanwhile, Anheuser-Busch InBev surged 4.2% after reporting an 8% increase in first-quarter operating profit, surpassing analyst expectations by more than double.
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