Thu Sep 19 05:53:17 UTC 2024: ## European Markets Surge After Bank of England Holds Rates Steady
**LONDON** – European markets closed higher on Thursday, fueled by investor optimism following the Bank of England’s decision to hold interest rates steady at 5%. This move was largely anticipated and came a day after the U.S. Federal Reserve announced a substantial 50 basis point rate cut.
The pan-European Stoxx 600 index finished the session 1.36% higher, with most sectors trading in the green. Mining stocks saw the largest gains, adding 3.16%, while utilities remained the only outlier, down 1.76%.
The Bank of England’s decision to maintain rates reflects a gradual approach to monetary easing, particularly as services inflation remains elevated. However, experts like Lindsay James, investment strategist at Quilter Investors, believe this pause paves the way for future rate cuts, likely starting at the next meeting in November.
Financial markets are expecting two more rate cuts this year and into next as economic momentum slows and inflation remains close to target.
Following the Fed’s rate cut, U.S. stocks rallied in morning deals, while trading in Asia-Pacific was mixed, ultimately closing higher.
In Europe, retail stocks saw a significant boost, climbing 1.9%. British retailer Next, in particular, experienced a surge in share prices, jumping as much as 5.8% before pulling back to just above the flatline. The company attributed this to an uptick in first-half sales and a projected annual profit of almost £1 billion ($1.32 billion).
Shares of Commerzbank fell 1% as further developments emerged following UniCredit’s acquisition of a 9% stake in the German lender last week. UniCredit CEO Andrea Orcel stated that the Italian bank was able to acquire a portion of the government’s stake in Commerzbank due to the government’s trust in their organization.
Norway’s central bank also maintained interest rates at a 16-year high of 4.5% but announced plans to begin cutting borrowing costs starting next year.
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