European stocks rise as bets strengthen on US rate cut

Some analysts reckon earnings disappointment could be the catalyst for some equity-market softness, especially after France’s election-linked turbulence stalled this year’s rally

Fed chairman Jerome Powell believes inflation is receding, as US core consumer price inflation for June rose 0.1% from May, the smallest rise since August 2021. Picture: Susan Walsh/AP

European stocks rose for a second day on Thursday, holding on to earlier gains, as US inflation data strengthened bets on a September interest-rate cut from the Federal Reserve.

The Stoxx 600 was 0.5% in afternoon trading yesterday.