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LONDON — European stocks were higher on Friday as investors continue to digest the European Central Bank’s decision to cut rates and its impact on future monetary policy.
The pan-European Stoxx 600 was up 0.49% by 8:53 a.m. London time, with all sectors and major bourses trading in positive territory. Autos led gains, up 1.43%, while construction and materials stocks were also 0.91% higher.
Shares of French financial services firm Worldline plunged more than 16% after it announced the departure of its CEO and adjusted in full-year guidance amid what it said were “slower trading conditions.”
The European Central Bank slashed rates as expected on Thursday, marking its second 25-basis-point cut this year and bringing its key interest rate to 3.5%.
Policymakers gave little indication on the course for monetary policy, however, with President Christine Lagarde saying the bank was not “pre-committing to a particular rate path.”
The ECB’s meeting comes just days ahead of the U.S. Federal Reserve’s Sept. 17-18 meeting, at which it’s expected to begin its own rate-cutting cycle.
U.S. stock futures were little changed overnight after the S&P 500 notched its fourth-straight winning session.
Asia-Pacific markets, meanwhile, were mixed, as mainland Chinese markets rebounded from a six-year low and Australian markets near an all-time high.
Back in Europe, inflation data is due out of France on Friday. There are no corporate earnings.