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European Shares Rebound

· Exchange

Stocks in Europe rebounded on Wednesday, with both the STOXX 50 and the STOXX 600 rising 0.6%, as investors' sentiment improved amid prospects the Fed will cut interest rates this year. Yesterday, Fed Chair Powell said at the ECB Forum that prices now shows signs of resuming its disinflationary trend and a lot of progress has been made on inflation. In Europe however, ECB President Lagarde tempered expectations of further rate cuts in Europe, saying the central bank is in no hurry to cut interest rates further as it needs more time to assess inflation and economic trends. In fact, preliminary estimates for June showed services inflation remained elevated and the core rate failed to slow, while the headline inflation eased. On the data front, final figures for Services PMI and PPI for the Euro Area are due.

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