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UPDATE 2-European stocks wrap up week on a high note; focus shifts to Fed
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UPDATE 2-European stocks wrap up week on a high ; focus shifts to Fed

For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a window

France's inflation at 0.2% in Aug.

AstraZeneca down after Deutsche Bank downgrades

Worldline plunges on another guidance cut, CEO exit

STOXX 600 up 0.7%

Updated at 1550 GMT

By Shubham Batra

- European stocks rounded off the week on a positive , supported by technology, real estate and mining shares, while investors shifted their focus to the U.S. Federal Reserve ahead of a long-awaited monetary easing at its meeting week.

The pan-European STOXX 600 index .STOXX was up 0.7% at 515.75 points on the day, while up gains of more than 1% for the week.

German shares .GDAXI outperformed European peers with a 1% jump, boosted by a rise in shares of Siemens Energy .ENR1n.DE and SAP SAPG.DE.

France's CAC 40 .FCHI rose 0.4% after consumer prices in the region's second-largest economy rose 2.2% year-on-year in August, in line with its preliminary reading.

Autos .SXAP were the top gainers among sectors, jumping 1.6% to log their best day in over a month.

Technology .SXKP and real estate .SX86P gave the market its biggest boost, followed by miners .SXPP that advanced 1.3%, as copper prices hit a two-week high on buying ahead of a Chinese holiday and amid stimulus hopes. MET/L

After the European Central Bank (ECB) lowered its deposit rate to 3.5% on Thursday, policymakers do see an interest rate cut in October, barring a major deterioration in the outlook for growth, sources told Reuters.

Two of the ECB's policymakers -- Francois Villeroy de Galhau and Joachim Nagel -- expressed confidence on Friday about the prospect for lower inflation and interest rates in the euro zone.

Investors are betting on the size and extent of the rate cut by the U.S. central bank week, with money markets seeing a 40% chance for a 50-bp reduction on Sept. 18.

"We're still expecting the Fed to cut by 25 basis points. But we're so far from right that a 50 basis point cut should be seen as a sign of danger on the horizon. So in that sense, it's entirely possible that they will make a more sizable cut week," said Gene Salerno, chief investment officer at SG Kleinwort Hambros.

Former chief of the New York Fed Bill Dudley said he thought there was a strong case for a 50-bp cut.

Among other movers, heavyweight AstraZeneca AZN.L fell after Deutsche Bank cut the stock's rating to "sell" and lowered its price target on Friday.

Worldline WLN.PA shares dropped 14.4% to an record low, after another profit warning and announcement of the departure of its CEO.



(Reporting by Shubham Batra in Bengaluru; Editing by Sherry Jacob-Phillips, Mrigank Dhaniwala and Jane Merriman)

((Shubham.Batra@thomsonreuters.com;))

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.
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