LONDON: European stock markets rose while Asia was mixed on Thursday (Sep 18) after the US Federal Reserve lowered interest rates but left investors wondering how many more cuts were in the pipeline.
Paris and Frankfurt stocks rose more than 1 per cent, while London also edged up nearing the halfway stage.
That followed gains in Tokyo, and losses in Hong Kong and Shanghai.
Investors awaited a Bank of England update on monetary policy on Thursday, with the BoE widely expected to maintain its key interest rate at 4 per cent with UK inflation stubbornly high.
“While the rate cut machine has whirred back into action for the US, it’s expected to remain idle in the UK for a bit longer,” said Russ Mould, investment director at AJ Bell.
The central banks of Norway and Canada both opted to cut interest rates this week.
On the heels of recent economic reports showing weaker US jobs growth, the Fed on Wednesday said it would lower borrowing costs by 25 basis points, its first reduction since December.
The decision to cut came even as US inflation runs well above policymakers’ 2 per cent target, but analysts said the main focus was on the jobs market.
Fed policymakers are split between those who expect at least two interest rate cuts later this year and those who anticipate one or fewer.
Fed boss Jerome Powell remained cagey, telling reporters decision-makers were approaching it “meeting by meeting”.