European Shares Edge Higher In Cautious Trade

(RTTNews) - European stocks traded higher on Friday as a slew of weak U.S. economic data suggested the Federal Reserve may have more leeway to cut interest rates later this year.

There is still considerable uncertainty despite the recent U.S.-China trade truce helping ease economic worries.

Fed Chair Jerome Powell warned in a speech on Thursday that near- zero interest rates are likely to be a thing of the past, and potentially more persistent, supply shocks could goose inflation higher and present a "difficult challenge for the economy and for central banks."

Closer home, Latvian ECB Governing Council member Martins Kazaks indicated market pricing of a 25bps cut at the June 5 meeting is "relatively appropriate".

The pan European STOXX 600 climbed 0.6 percent to 550.13 after rising 0.6 percent on Thursday.

The German DAX jumped 0.7 percent, while France's CAC 40 and the U.K.'s FTSE 100 were up around half a percent each.

United Internet AG surged 6 percent. The German Internet conglomerate said it would invest up to €300 million to boost its stake in mobile subsidiary 1&1 from 80.8 percent to 90 percent.

ASSA ABLOY AB gained 1 percent. The world's leading manufacturer of locking systems has acquired TeleAlarm Group, a European provider of remote care technology that combines hardware and software solutions.

Cartier owner Richemont soared 6 percent as it reported a slightly better-than-expected 7 percent rise in quarterly sales.

Reinsurer Swiss Re added 1.4 percent on posting stronger-than-expected Q1 results. Commercial property firm Land Securities declined 1.7 percent after delivering positive annual results.

Workspace Group shares plummeted 10 percent. The landlord foresees a trading profit headwind of approximately £7 million by March 2026.

In economic releases, France's jobless rate rose marginally in the first quarter, the statistical office INSEE reported.

The ILO unemployment rate stood at 7.4 percent, up from 7.3 percent in the fourth quarter of 2024. The rate matched economists' expectations.

The number of unemployed people increased 64,000 from the previous quarter to 2.4 million.