- Pope to visit Belgium, Luxembourg in September
- Gold hits high as Iran shock triggers haven support
- Strikes pound Gaza as Israel voices 'duty' to expand Rafah incursion
- Russia tries playwright and director on terror charges
- Iran mourns president Raisi's death in helicopter crash
- Attack on tourists rocks fledgling Afghanistan tourism sector
- Paralympics should put disability back on global agenda, says IPC chief
- South Africa's top court strikes Zuma from ballot
- Crunch time looms for BHP's bid buy Anglo American
- Kane to face old club Spurs for first time in Seoul
- Markets rise as traders cheered by China property plan
- Black farmers in Brazil changing views on coffee production
- Iran's President Raisi declared dead in helicopter crash
- Australia police arrest 554 in domestic violence crackdown
- South Korea, Britain host AI summit with safety top of agenda
- New president Lai vows to defend Taiwan's democracy
- Forever fad: Rubik says his cube 'reminds us why we have hands'
- Trump eyes witness stand as trial draws to a close
- Ryanair annual profit jumps on higher demand, fares
- High-priced Cummins, Starc face off as IPL enters playoffs
- Iran media says President Raisi died in helicopter crash
- Dominican Republic President Abinader re-elected to 2nd term
- New Taiwan president Lai hails 'glorious' democracy
- New Caledonia separatists defy French efforts to unblock roads
- Timberwolves knock out defending champion Nuggets, Pacers oust Knicks
- Trump biopic hits Cannes Film Festival
- Iran President Raisi's helicopter found, 'no sign of life'
- Three talking points ahead of 2024 French Open
- 'Haikyu!!': Comic heroes fuel Japan Olympic volleyball manga mania
- Timberwolves rally to knock defending champion Nuggets out of NBA playoffs
- London court set to rule on Julian Assange extradition
- Business and Bollywood votes in India election
- Pope calls anti-migrant attitudes at US border 'madness'
- Mexico aims to be big economic winner from US-China tensions
- Uncertain future for thousands after deadly Brazil floods
- Schauffele makes the putt of his life for first major win
- Wirtz returns to help unbeaten Leverkusen chase history
- Search for Iran's President Raisi after helicopter goes missing
- DeChambeau's powerful putting has him excited for US Open
- Taiwan to swear in new president as China pressure grows
- Atalanta can end 61-year wait for trophy in Europa League final
- Schauffele birdies final hole to capture PGA for first major win
- Guardiola casts doubt over long-term Man City future
- Hollywood icons Costner and Demi Moore make Cannes comeback
- Pacers shoot down Knicks to reach NBA Eastern Conference finals
- Schauffele birdies final hole, captures first major at PGA Championship
- McLaughlin powers to Indy 500 pole in all-Penske front row
- Monaco footballer tapes over LGBTQ badge
- Korda wins sixth LPGA title of year with win at Liberty National
- Pacers put on shooting show to down Knicks, reach NBA Eastern Conference finals
London, Frankfurt stocks hit record highs on rate-cut hopes
The London and Frankfurt stock exchanges hit record highs Thursday as the Bank of England kept its interest rate at a 16-year high but raised hopes of a cut in the coming months.
Meanwhile, Wall Street failed to gain any traction from data showing a climb in claims for unemployment benefits that could raise the prospect of a US rate cut.
The British capital's benchmark FTSE 100 index, which has been breaking records repeatedly in recent days, topped 8,390 points around midday before paring down some gains.
The DAX in Frankfurt jumped above 18,600 points. The Paris CAC 40 also rose after falling earlier in the day.
The Bank of England kept its key rate at 5.25 percent for a sixth meeting in a row in efforts to tame inflation, mirroring a wait-and-see approach by the US Federal Reserve and European Central Bank.
UK annual inflation fell less than expected in March to 3.2 percent but BoE Governor Andrew Bailey voiced optimism that it would soon return to the central bank's two-percent target.
"I'm optimistic that things are moving in the right direction," he said.
His comments raised hopes that the BoE could soon cut rates. Its next meeting is in June.
"There is a cautious sense of optimism with analysts predicting we are edging closer to the first cut in interest rates since the pandemic, with the first cut potentially this summer," said Richard Flax, chief investment officer at Moneyfarm.
The Bank of England also released its latest quarterly Monetary Policy Report, with forecasts for growth revised higher and the inflation outlook dropping below three percent, noted XTB research director Kathleen Brooks.
"The economic backdrop has been given a good boost from this Monetary Policy report, and that is reflected in the FTSE 100, which reached a fresh intra-day record high," she told AFP.
While others are holding rates higher, Sweden's central bank on Wednesday reduced borrowing costs for the first time in eight years and signalled more were in the pipeline.
The Riksbank decision was announced nearly two months after the Swiss National Bank became the first major Western central bank to move since a global tightening campaign to fight inflation fuelled by Covid recovery and the Ukraine war.
The ECB is expected to cut its rates in June.
But traders hoping for US Federal Reserve cuts have been on a rollercoaster ride this year as a string of forecast-beating inflation readings have forced them to chip away at their expectations.
The consensus is now about two cuts by January, against six estimated at the start of 2024.
But a rise in first-time claims for unemployment benefits, following a soft jobs report last week, bolstered hopes that rate relief is on the way.
"The key takeaway from the report is the jump in initial claims, which will be construed as a sign of softening in the labor market," said Briefing.com analyst Patrick O'Hare.
"That view, in turn, will be construed as a possible trigger for a Fed rate cut in coming months," he added.
Elsewhere, oil prices ticked higher as investors keep tabs on efforts for a ceasefire in the Middle East, even as Israel presses ahead with an assault on Rafah in southern Gaza.
- Key figures around 1330 GMT -
New York - Dow: DOWN 0.2 percent at 38,995.05 points
New York - S&P 500: FLAT at 5,189.10
New York - Nasdaq Composite: UP 0.2 percent at 16,331.34
London - FTSE 100: UP 0.2 percent at 8,368.52
Frankfurt - DAX: UP 0.9 percent at 18,659.42
Paris - CAC 40: UP 0.4 percent at 8,159.77
EURO STOXX 50: UP less than 0.1 percent at 5,040.81
Tokyo - Nikkei 225: DOWN 0.3 percent at 38,073.98 (close)
Hong Kong - Hang Seng Index: UP 1.2 percent at 18,537.81 (close)
Shanghai - Composite: UP 0.8 percent at 3,154.32 (close)
Euro/dollar: UP at $1.0760 from $1.0748 on Wednesday
Dollar/yen: UP at 155.74 yen from 155.63 yen
Pound/dollar: UP at $1.2500 from $1.2495
Euro/pound: UP at 86.08 from 86.00 pence
West Texas Intermediate: UP 0.1 percent at $79.08 per barrel
Brent North Sea Crude: UP less than 0.1 percent at $83.62 per barrel
burs-rl/lth
S.Keller--BTB