The pan-European Stoxx 600 index was up 0.5 percent by 3:12 p.m. London time, with all major bourses and most sectors in the green. Retail stocks added 1.3 percent, while mining stocks fell by 1.1 percent.
The British pound, meanwhile, jumped to a 13-month high of $1.3127 after fresh data showed an increase in U.K. business activity. Sterling was trading at $1.3119, its highest level since July 2023.
Corresponding PMI data for the eurozone also showed an uptick in business activity over the month, even as wage growth eased, paving the way for a potential September rate cut from the European Central Bank.
Minutes from the ECB’s last meeting, released Thursday, showed that policymakers were in no rush to cut rates in July but saw September as the next best opportunity to consider further easing.
Fed minutes released Wednesday also showed that officials had moved closer to a long-awaited interest rate cut during their July meeting. The vast majority of participants agreed that a reduction was “likely” come September if the data “continued to come in as expected.”
U.S. stocks were in trouble early Thursday as investors looked ahead to Fed Chair Jerome Powell’s speech at Jackson Hole, Wyoming, on Friday.
In Asia, markets were mixed as investors digested business activity data from Australia and Japan and awaited PMI numbers from India.
