European markets hit records as traders expect rate cuts
Stock markets in the UK and Germany have suddenly sprung to life. The reason? Good economic news? A surge of corporate profitability? Of course not! Though profit expectations for both countries have improved in recent weeks, those still remain shy of prior peaks.
Rather, it’s the sweet, sweet smell of rate cuts in the air. The Bank of England seems to be contemplating cuts as soon as June. On the continent, where the economies of major powers France and Germany are both struggling, rate cuts are also expected next month.
