European bourses tracked moderately higher midday Thursday as traders anticipated interest rate cut announcements from the Bank of England and the US Federal Reserve, which would follow a rate reduction disclosed in the morning by Sweden's central bank. Sveriges Riksbank in Stockholm reduced its key policy rate to 2.75% from 3.25%, as expected, and indicated further cuts are on the table. Tech and property stocks led gainers, while retail issues lagged. Investors also eyed Wall Street futures signaling green, and higher closes overnight on Asian exchanges, excluding Tokyo. Retail sales in the euro area rose 0.5% in September from August, and gained 0.3% in the broader European Union, reported Eurostat.
On the year, September retail sales gained by 2.9% in the euro area, and 2.8% in the EU. The pan-continental Stoxx Europe 600 Index was up 0.5% mid-session. The Stoxx Europe 600 Technology Index was up 1.8%, and the Stoxx 600 Banks Index gained 0.2%. The Stoxx Europe 600 Oil and Gas Index was off 0.7%, but the Stoxx 600 Europe Food and Beverage Index inclined 0.7%. The REITE, a European REIT index, rose 0.7%, but the Stoxx Europe 600 Retail Index was flat. On the national market indexes, Germany's DAX was up 1.2%, and the FTSE 100 in London was up 0.6%.
The CAC 40 in Paris was up 0.6%, and Spain's IBEX 35 also gained 0.6%. Yields on benchmark 10-year German bonds were higher, near 2.48%. Front-month North Sea Brent crude oil futures were down 0.8% to $74.28 per barrel. The Euro Stoxx 50 volatility index was down 6.6% to 17.27, indicating below-average volatility for European stock markets in the next 30 days, a positive signal.
A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges..