Dovish commentary from central bank chiefs at the Sintra forum lifted UK and European stocks on Thursday, offsetting a slide in oil prices linked to US-Iran talks. The FTSE 100 climbed while Jefferies read the panel as a signal of no further rate hikes this year.
British stocks rose on Thursday as dovish central bank commentary out of the Sintra forum outweighed pressure from falling oil prices tied to progress in US-Iran talks. The FTSE 100 edged up to 0.58% as of 08:14 ET, with Germany’s DAX and France’s CAC 40 up 1.05% and 0.98% respectively. Sterling firmed to 1.3304, up 0.20%.
Central bankers strike a dovish tone
Federal Reserve Governor Kevin Warsh, ECB President Christine Lagarde and BoE Governor Andrew Bailey all sounded dovish on a Sintra panel. According to Investing.com, Jefferies strategist Mohit Kumar described Bailey as “probably the most clear,” arguing the UK is going through a “soft patch” in which rising mortgage rates have “effectively tightened” policy without further hikes.
Lagarde noted that oil “was at $120 a few weeks ago and is now close to $70,” while Jefferies said the panel supported its view of no further hikes this year from the Fed, ECB or BoE. The firm also flagged that Meta’s plan to monetise excess AI compute capacity through a cloud offering triggered a sell-off in chip names, sending the KOSPI sharply lower overnight.
Oil slides as US-Iran talks progress
Crude weakened as diplomacy advanced. Qatar and Pakistan said “positive progress was made” in indirect Doha talks between US and Iranian negotiators, with both sides agreeing to continue. President Donald Trump described the Doha meetings as “very good,” while Vice President JD Vance told CNN talks were going well, though he added the nuclear discussions were only just set to begin.
Brent crude fell to $70.35 a barrel, down 1.7%, while WTI dropped 2% to $67.24. Gold futures slipped 0.10% to $4,077.92, while spot gold rose 0.86% to $4,066.31.
UK corporate moves
Among UK names, Currys reported an 18% rise in annual profit and said trading at the start of the new financial year had been very solid, with sales growth in the UK and the Nordics. Separately, Genel Energy will acquire Capricorn Energy in a $360 million cash deal, offering shareholders $4.74 per share including a special dividend, subject to shareholder, regulatory and Egyptian government approvals.
Source: Investing.com Canada
Trading involves risk.
Risk Disclaimer
