Europe midday: Stoxx up as BoE cuts rates; SocGen surges

(Sharecast News) - European shares extended gains and hit fresh record highs on Thursday after the Bank of England cut interest rates.

The pan-regional Stoxx 600 was up 0.76% at 542.66, just below the new intra-day high of 543.42. Germany's DAX was up 1% and France's CAC-40 0.85% amid another swathe of corporate earnings.

The BoE cut its base rate by 25 basis points to 4.5% in its third move since last August. Policy makers were split 7-2 on the decision, with the dissenters pushing for a half point cut.

"There has been substantial progress on disinflation over the past two years, as previous external shocks have receded, and as the restrictive stance of monetary policy has curbed second-round effects and stabilised longer-term inflation expectations," the central bank said.

"That progress has allowed the MPC to withdraw gradually some degree of policy restraint, while maintaining (the) bank rate in restrictive territory so as to continue to squeeze out persistent inflationary pressures."

In equity news, Maersk surged as the Danish shipping giant beat fourth-quarter earnings forecasts but warned of weaker earnings in 2025 due to geopolitical worries.

Compatriot Carlsberg gained despite missing sales forecasts and pointing to lower growth in 2025.

Societe Generale jumped after reporting a sharp increase in fourth-quarter profit on Thursday, driven by a rebound in its domestic retail banking unit and a strong trading performance.

Reporting by Frank Prenesti for Sharecast.com