STOCK EXCHANGE: Europe is looking for direction after the Fed’s interest rate cut and Oracle’s earnings disappointment

The European stock market sought direction on Thursday after the US central bank Fed’s interest rate decision. Investors are also considering the profitability of artificial intelligence investments after the earnings report of US company Oracle fell short of expectations.

The pan-European Stoxx Europe 600 index opened with a mild 0.1 percent decline. In London, the FTSE 100 was close to yesterday’s closing level, while in Paris the CAC 40 was up 0.1 percent. In Frankfurt, the DAX had fallen by 0.2 percent.

Investment strategist at Global X Management Billy Leungin According to The company reported increased investments in artificial intelligence centers and equipment, but these expenses are taking longer to turn into profits than investors had hoped, Leung commented to Bloomberg.

Concerns about runaway costs also affected European software companies such as SAP (-2.1%).

However, the general undercurrent of the market is supported by the US central bank’s recent interest rate cut. As expected, the Fed lowered its key interest rate by 25 basis points for the third time in a row. However, the decision was not completely unanimous. For the first time since 2019, three members of the Open Market Committee voted against the decision.

Schneider Electric’s extensive share purchase program

Industrial giant Schneider Electric announced that it will launch a buyback program of its own shares worth up to 3.5 billion euros, which is part of a growth strategy that extends to 2030. Schneider is aiming for a significant improvement in profitability with the help of equipment demand created by electrification and artificial intelligence.

“We want to take advantage of the opportunities offered by electrification, automation and digitalization now and in the future,” CEO Olivier Blum your line.

Volkswagen, on the other hand, announced that it is considering introducing combustion engine-assisted electric cars to the European and American markets as well, in response to subsidy cuts and charging network concerns. The company is currently investigating the addition of the so-called range extender technology, which is popular in China, to its models in the western market, when the EU’s electrification goals have come under new scrutiny.