European Stocks Rise as Sweden Cuts Interest Rates
- European stocks cautiously rose following uncertainty over interest rate cuts.
- Sweden's Riksbank decision to cut rates added to the market's cautious optimism.
- Investors are closely monitoring the ongoing developments in the European market.
LONDON — European stock markets experienced a modest uptick on Tuesday, with the pan-European Stoxx 600 index rising by 0.18% as investors navigated ongoing uncertainty regarding potential interest rate cuts. While technology stocks saw a notable increase of 1.21%, the oil and gas sector faced a decline of 1.29%, reflecting mixed performance across various sectors and major exchanges. In a notable development, shares of Danish biotech firm Zealand Pharma surged by as much as 4%, recovering from previous losses. This rebound followed comments from CEO Adam Steensberg, who indicated the company is actively seeking a partnership with a major pharmaceutical firm to advance its weight loss drug to market. This news has sparked interest among investors, highlighting the potential for growth in the biotech sector. Central bank actions also influenced market sentiment, particularly Sweden's Riksbank, which announced a 25 basis point cut in interest rates, lowering them from 3.75% to 3.50%. The Riksbank hinted at the possibility of two to three additional rate cuts later this year, with analysts suggesting that the central bank will closely monitor the Federal Reserve's policy decisions to avoid significant disparities in interest rates. As global markets await critical updates from the Federal Reserve, attention will be focused on the release of the minutes from the Fed's latest meeting on Wednesday, followed by a key speech from Fed Chair Jerome Powell at the Jackson Hole symposium on Friday.