By Shubham Batra
European stocks saw gains on Friday, with miners leading the way, as investors turned their attention to the upcoming U.S. Federal Reserve meeting. The pan-European index was up 0.5% at 514.4 points, with 40 rising 0.3% after consumer prices in the region's second-largest economy rose 2.2% year-on-year in August.
Autos and miners were among the top gainers, with autos jumping 1.5% and miners rising 0.8% as prices hit a two-week high. This surge came ahead of a Chinese holiday and amid stimulus hopes after President Xi Jinping's call for measures to boost economic growth.
Following the European Central Bank's rate cut on Thursday, sources told Multibagger that there may not be an interest rate cut in October unless there is a significant downturn in growth. ECB policymaker Joachim Nagel expressed confidence in the rate cut, saying that inflation in the euro zone is moving in the right direction.
Investors are now speculating on the size of the rate cut by the U.S. central bank next week, with a 40% chance of a 50-basis point reduction on Sept. 18. Chief investment officer Gene Salerno expects a 25-basis point cut but does not see a larger cut as a sign of danger.
Individual movers in the market included AstraZeneca, which saw a 2.1% decline after a rating cut by Deutsche Bank, and Worldline, which dropped 16.5% to an all-time low following a profit warning and CEO departure announcement.
The Eurozone's industrial production data for July and ECB President Christine Lagarde's comments at the Eurogroup meeting will be closely watched for insights into the bank's interest-rate trajectory.