Tue Sep 17 05:50:00 UTC 2024: ## European Stocks Rise on Rate Cut Hopes, Commerzbank Jumps on UniCredit Interest
**LONDON -** European stocks closed higher on Tuesday, rebounding from Monday’s losses as investors eagerly await central bank interest rate decisions. The pan-European Stoxx 600 index closed up 0.42%, boosted by strong performance in the banking and automotive sectors.
Commerzbank shares reached a 12-year high after Bloomberg reported UniCredit is seeking approval from the European Central Bank to acquire a 30% stake in the German bank. However, the stock later eased to close near-flat.
Retail stocks also performed well, with British home improvement firm Kingfisher leading the charge with a 10% jump after raising its profit range on improved sales. According to Morningstar senior equity analyst Matthew Donen, the results reflect management’s cost control efforts and strong performance in the UK and Poland, which offset challenges in France.
Investors are closely watching central bank meetings this week, with the US Federal Reserve widely expected to cut interest rates for the first time in four years on Wednesday. Market bets on a 50 basis point cut, instead of the previously expected 25 basis points, have increased to over 50% this week, adding to the uncertainty surrounding the Fed’s decision.
The Bank of England and the Bank of Japan will also hold policy meetings on Thursday and Friday, respectively.
Meanwhile, Asian Pacific markets were mixed on Tuesday, with Japan’s Nikkei 225 dropping over 2% as the yen strengthened ahead of the Fed decision.
In Europe, Germany’s economic sentiment weakened slightly in September, according to the ZEW Economic Sentiment Index, further highlighting the struggles of the country’s economy.
US stocks were higher in morning deals, with the S&P 500 hitting a record high.
First Piper 