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European shares break 4-day losing streak on Fed Powell's dovish remarks

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By Reuters
European shares break 4-day losing streak on Fed Powell's dovish remarks
FILE PHOTO: The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, July 3, 2019. REUTERS/Staff   -   Copyright  STAFF(Reuters)
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(Reuters) – European shares rose on Thursday, breaking a four-day losing streak, after U.S. Federal Reserve Chair Jerome Powell cemented hopes of an interest rate cut this month, lifting stock markets worldwide.

While strong U.S. jobs data last week had investors trimming bets of a 50 basis points cut in interest rates by the Fed in July, Powell’s remarks saw interest rate futures pricing in greater odds of an aggressive rate cut this month.

The pan-European stocks benchmark <.STOXX> rose 0.2% after accumulating losses of 1.4% over the last four sessions. The release of Powell’s prepared remarks had lifted stocks briefly into the black on Wednesday, but they closed lower.

The European Central Bank is scheduled to release at 1130 GMT minutes of its last meeting when chief Mario Draghi took a sharp dovish turn, pushing stock markets higher.

Among stocks, Britain’s Reckitt Benckiser <RB.L> was among the biggest positives after it agreed to pay up to $1.4 billion to resolve all U.S. federal investigations in connection with the sales and marketing of Suboxone Film by its former prescription pharmaceuticals business Indivior <INDV.L>.

(Reporting by Susan Mathew in Bengaluru; Editing by Bernard Orr)