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European shares reached a record high on Friday, driven by anticipation of possible rate cuts from the European Central Bank and the Federal Reserve.
The pan-European Stoxx 600 increased by 0.27% to 526 points, surpassing the previous record high of 525.59 set on June 7.
This positive momentum was supported by recent inflation data from Germany and Spain, which showed unexpected declines in prices. Preliminary data from Germany indicated that inflation dropped to 2% in August, down from 2.6% in July and below the 2.3% forecast. In Spain, preliminary harmonized inflation for August came in at 2.4%, compared to the 2.9% recorded the previous month.
In the UK, the FTSE 100 edged closer to its own record high as shares rallied at the start of trading. France's CAC 40 gained ground following CPI data that revealed an increase in consumer spending in August, while Spain's IBEX 35 rose after retail sales data showed a 1% uptick in July.
Matt Britzman, an analyst at Hargreaves Lansdown, commented: "The recent global sell-off has largely been overlooked, serving as a reminder that panicking is not beneficial. While some minor fluctuations may occur, there are few catalysts expected to significantly move the markets today, suggesting the UK’s largest index could see its third consecutive week of gains."
On the economic front, German import prices rose by 0.9% year-on-year in July, with a 0.7% increase from the previous month, according to Federal Statistical Office Destatis. However, import prices in July 2024 were 0.4% lower compared to June 2024.
In corporate news, Ambu's shares fell by 10.7% following the release of its third-quarter results.
