LIVE MARKETS-Europe before the bell: futures higher after Fed rate cut

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EUROPE BEFORE THE BELL: FUTURES HIGHER AFTER FED RATE CUT

European stock futures and their U.S. counterparts are trading higher on Thursday, a day after the Fed resumed its cutting cycle and indicated more cuts could follow.

The Fed lowered its benchmark rate by a quarter point to 4%-4.25%, in line with expectations, and indicated it would steadily cut rates further for the rest of the year, but the outlook for interest rates in 2026 remains cloudy.

"We would describe the statement and the press conference as 'balanced' and the FOMC committee as deeply divided over the macro outlook," writes Jefferies economist Mohit Kumar.

Euro STOXX 50 futures STXEc1 are up 0.4%. Wall Street futures EScv1 are rising a similar amount after the S&P 500 .SPX closed slightly lower on Wednesday.

Eyes in Europe are now turning to the Bank of England's rate decision later in the day. Britain's central bank is expected to hold rates steady but focus will be on its plans to reduce its bond holdings.

In corporate news, British retailer Next NXT.L reported a 13.8% rise in first half profit, but said it was cautious about trading in the second half of the year.

(Samuel Indyk)

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