European indices soared to new highs overnight helped by a 0.25% rate cut to 4.5% by the BOE with further cuts expected as it downgraded the U.K.’s growth forecast for 2025. The BOE said that there had been “substantial progress on disinflation over the past two years, as previous external shocks have receded” but, it emphasized that “a gradual and careful approach to the further withdrawal of monetary policy restraint is appropriate.” Futures markets are factoring in another two or three rate cuts in 2025.
- We have no interest in fading the current strength across European bourses, but its hard identify a target at this stage.
MM are neutral to cautiously bullish towards European stocks
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