Swiss Interest Rate Cut Sparks Market Rally: Stock Prices Surge

Money | June 20, 2024, 3:53 a.m.

European stocks rallied after the Swiss National Bank cut interest rates in a day filled with monetary policy activity. The Stoxx 600 index rose 0.4%, led by tech, insurance, and real estate sectors. US futures also strengthened, hinting at record highs for Wall Street post-holiday. The dollar rose against currencies, while US 10-year Treasury yields climbed. The Swiss franc dropped against the euro and the dollar following the rate cut. Norges Bank kept rates steady, and the Bank of England is expected to do the same. French bond auctions and developments in the UK are closely watched. Wall Street is set for new highs, with tech stocks leading. European stock movers included Evotec SE and Societe BIC SA. The offshore yuan weakened, and China hinted at interest-rate reforms. Key events this week include Eurozone consumer confidence and UK BOE rate decision.