European stock markets opened higher on Friday, buoyed by this week’s interest rate cut by the US Federal Reserve and steady policy decisions by other central banks. The optimism comes as investors also await a closely watched phone call between US President Donald Trump and Chinese President Xi Jinping, expected to address tariffs and the future of TikTok’s US operations.
In early trading, France’s CAC 40 rose 0.38% to 7,884.10, Germany’s DAX edged up 0.04% to 23,682.84, and London’s FTSE 100 was virtually flat, up 0.01% at 9,229.03. Spain’s IBEX 35 gained 0.39% to 15,234.60, while Italy’s FTSE MIB climbed 0.25% to 42,414.35. The pan-European STOXX 50 ticked up 0.14% to 5,464.47, though the broader STOXX 600 slipped 0.03% to 554.83.
The gains followed the US Federal Reserve’s decision on Wednesday to cut its benchmark rate by 25 basis points — the first reduction this year — in a bid to support a cooling job market. The Bank of England and the Bank of Japan opted to keep rates steady on Thursday and Friday, respectively.
In Asia, markets were mixed. Japan’s Nikkei 225 fell 0.57% to 45,045.81 after the central bank left its short-term rate unchanged at 0.5% and inflation data showed consumer prices easing to 2.7% in August, a 10-month low. Hong Kong’s Hang Seng index gained 0.26% to 26,476.86, but the Shanghai Composite slipped 0.30% to 3,820.09. Australia’s S&P/ASX 200 rose 0.32% to 8,773.50, while South Korea’s Kospi dropped 0.46% and India’s Sensex retreated 0.53%. Taiwan’s Taiex fell 0.74%.
On Wall Street, major indexes extended their record run on Thursday, with the S&P 500 climbing 0.48%, the Dow Jones Industrial Average adding 0.27%, and the Nasdaq up 0.94%. Smaller companies also surged, with the Russell 2000 index jumping 2.5% to set an all-time high.
Tech stocks led the rally. Intel soared nearly 23% — its best single-day performance since 1987 — after Nvidia announced it would invest $5 billion in the chipmaker as part of a joint project to develop new products for data centres and PCs. Nvidia, Wall Street’s most valuable company, gained 3.5%, providing the largest boost to the S&P 500.
Economic signals added to the optimism. US jobless claims fell more than expected last week, easing concerns after a sharp rise in the prior week. Still, Federal Reserve Chair Jerome Powell cautioned that the central bank faces a delicate balance as it attempts to support employment without allowing inflation, which remains elevated, to become entrenched.
In commodities, benchmark US crude slipped 0.16% to $63.47 a barrel, while Brent crude eased to $66.90. The dollar weakened slightly to 147.82 yen, and the euro dipped 0.1% to $1.18.
With investors awaiting developments from the Trump–Xi call, analysts say markets are likely to remain sensitive to any signals on trade policy or progress on the TikTok deal.
