European stocks track Wall Street gains, up to two-year high

European stocks opened slightly higher on Tuesday, reaching their highest levels in two years, supported by gains on Wall Street on Monday night, as investors weighed their expectations for an interest rate cut in a week filled with important developments for the markets.

According to Reuters, the European Stoxx 600 index rose 0.2% by 0825 GMT, rising for the fifth session in a row.

Wall Street rose to unprecedented levels on Monday as focus shifted to the results of big technology companies from the United States and the Federal Reserve’s decision on interest rates, both of which could determine the course of the markets.

Although there is broad consensus that interest rate cuts in Europe are imminent, policymakers are divided on the timing of such measures.

Traders expect approximately 75% that the European Central Bank will cut interest rates by at least 25 basis points in April.

The industrial sector received a boost, supported by a 4.9 percent jump in the shares of the Swedish construction company Skanska, after Jefferies raised its recommendation for the company’s stock to “buy,” but Diageo’s shares fell 3.2 percent after the largest alcoholic beverage manufacturer in the world violated sales estimates for the first half of the year.

The French CAC 40 index increased 0.1%, supported by a 1.8% rise in Renault shares after the automaker abandoned its plans to launch its electric car unit, attributing this to the dull conditions of the stock market.