LIVE MARKETS-STOXX pauses ahead of fitch rating decision on France

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STOXX PAUSES AHEAD OF FITCH RATING DECISION ON FRANCE

European bourses paused for breath, as traders digest the ECB meeting and as markets braced for Fitch's credit rating verdict on France later in the day, after briefly rising at the opening with global markets cheering up at the prospect of an imminent interest Fed rate cut.

The STOXX 600 index fell 0.2% but was still set for weekly gains as markets have priced in three Fed interest cut this year, with the first one next week.

But Europe was cautious, as markets are now pricing no rates ECB rate at least until December next year, after the central bank kept its key interest rate on hold at 2% for a second straight meeting on Thursday, with ECB chief Christine Lagarde saying the central bank remains in a "good place".

Markets also focused on Fitch's rating review of French credit, with market participants bracing for a potential downgrade later on Friday.

The country's president, Emmanuel Macron, appointed its fifth prime minister in under two years earlier this week at a time when recent local governments have struggled to unite over plans for debt-fuelled fiscal spending.

Paris bluechips .FCHI are down 0.6%.

In corporate news, Ocado shares fall more than 10% after its U.S. grocery partner Kroger flagged it will review its warehouse investments.

(Joice Alves)

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EARLIER ON LIVE MARKETS:

EUROPE BEFORE THE BELL: EUROPE FUTURES RISE ON BETS FOR FED CUTS CLICK HERE

MARKETS TO FED: WE'LL TAKE FIVE TO GO, PLEASE CLICK HERE