European Markets Close On Firm Note On Renewed Hopes Of Fed Rate Cuts

(RTTNews) - Despite U.S. President Donald Trump's announcement of fresh tariffs on several items imported into America, the major European markets closed on a firm note on Friday amid prospects of the Federal Reserve lowering interest rates after a closely watched data showed consumer prices in U.S. increased in line with estimates in the month of August.

The U.S. President announced that he will impose import tariffs on pharmaceutical drugs, kitchen cabinets and bathroom vanities, upholstered furniture, and heavy trucks.

Trump announced on Thursday that branded pharmaceuticals imported into the U.S. will be levied a 100% tariff, and heavy-duty trucks will be imposed a 25% levy, effective October 1st. He has also proposed levies on kitchen cabinets, bathroom vanities.and upholstered furniture.

The pan European Stoxx 600 climbed 0.47%. The U.K.'s FTSE 100 gained 0.5%, France's CAC 40 ended 0.67% up, and Germany's DAX advanced 0.43%. Switzerland's SMI settled with a gain of 0.45%.

Among other markets in Europe, Belgium, Czech Republic, Finland, Iceland, Ireland, Netherlands, Norway, Poland, Portugal, Russia, Spain and Sweden closed higher.

Denmark, Greece and Turkiye ended weak.

In the UK market, Intercontinental Hotels Group rallied about 4%. Hikma Pharmaceuticals, Babcock International, Natwest Group, Kingfisher, Rentokil Initial, Antofagasta, Weir Group, Burberry Group, Fresnillo, Whitbread and Lloyds Banking Group gained 2 to 3.4%.

Metlen Energy & Metals and Rio Tinto lost about 2.1% and 1.7%, respectively. Coca-Cola Europacific Partners, Spirax Group and Bunzl closed down by 1 to 1.2%.

In the German market, Munich Re surged nearly 4%. Allianz, MTU Aero Engines, Siemens, Mercedes-Benz, Hannover Rueck and Brenntag gained 2 to 2.5%.

RWE, Siemens Energy, Heidelberg Materials, Deutsche Bank, Fresenius Medical Care, Beiersdorf, BMW and BASF also closed with strong gains.

Zalando ended down by about 2.5%. Infineon Technologies, Daimler Truck Holding and Volkswagen lost 1.7 to 2%.

In the French market, Bouygues, ArcelorMittal, BNP Paribas and EssilorLuxottica gained 2.1 to 2.6%.

AXA, Schneider Electric, LVMH, Total Energies, Kering, Carrefour, Societe Generale, Saint Gobain, Vinci, Safran, Sanofi, Veolia Environment, Accor, Airbus and Orange also closed with strong gains.

Pernod Ricard, Capgemini and STMicroElectronics lost 2 to 2.5%. Euronext, Stellantis, Edenred and Renault also closed weak.

A closely watched Commerce Department report showed consumer prices increased in line with economist estimates in the month of August.

The report said the personal consumption expenditures (PCE) price index climbed by 0.3% in August after rising by 0.2% in July. The price growth matched expectations. The annual rate of growth by the PCE price index ticked up to 2.7% in August from 2.6% in July, which was also in line with estimates.

The annual rate of growth by the core PCE price index came in at 2.9% in August, unchanged from July and in line with estimates.

The data has helped increase confidence the Federal Reserve will continue lowering interest rates in the coming months.