FTSE 100 up 0.78%; DAX up 0.58%; CAC 40 up 0.71% (Il Sole 24 Ore Radiocor) - Milan, 10 May - European shares were higher at mid-session, rising for a sixth straight session and ending the week on a positive note as stronger-than-expected UK growth data and renewed hopes for rate cuts by the US Federal Reserve helped support investor sentiment.

The Stoxx 600, the German DAX, the French CAC 40 and the UK's FTSE 100 hit fresh intra-day record highs.

Official data showed that the UK economy emerged from recession as gross domestic product rose 0.6% in the first quarter, beating expectations. Economists polled by Reuters had forecast a 0.4% growth on the previous three months of 2024.

Yesterday the Bank of England kept rates unchanged, as widely expected, but hinted at future rate cuts as inflation is seen easing.

In the US, fresh weekly jobless claims data released yesterday came in at the highest level since August, corroborating evidence in the recent non-farm payrolls report that the US labour market may finally be slowing and rekindling hopes for rate cuts by the Federal Reserve.

Investors now awaited the US producer price index and the consumer price index for April due next week for signs that inflation has resumed its decline towards the US central bank's 2% target rate.

Stubborn inflation has recently prompted the Fed to put back the timetable for rate cuts and prompted traders to recalculate their expectations for the number of cuts this year.

Traders also continued to monitor fresh earnings reports from European companies including British Airways parted IAG, Unipol, Mediobanca and Iveco.

Oil prices were set to book their first weekly gain in several weeks on Middle East tensions and a positive demand outlook in the US and China.

US stock futures pointed to a higher open after yesterday the Dow Jones Industrial Average wrapped its seventh straight positive session, its longest winning streak since December.

At 1125 GMT the FTSE 100 was up 0.78% at 8,447 points, the the Frankfurt DAX was up 0.58% at 18,788 points. The Paris CAC 40 was up 0.71% at 8,245points, while in Milan the FTSE MIB was up 1.04% at 34,696 points and in Madrid the IBEX 35 was up 0.68% at 11,124 points.

AAA-Ver

(RADIOCOR) 10-05-24 13:45:04 (0394) 5 NNNN