Fed rate cut boosts market sentiment, European stock markets approach record highs

The Federal Reserve's interest rate cut boosts market sentiment, with European stock markets nearing record highs. The pan-European STOXX 600 index rose by about 1% to 519.61 points, approaching the record high of 525.05 points in August. Retail stocks performed well, while defensive stocks lagged behind. Market expectations for the Fed to guide the economy to a soft landing have strengthened, despite Powell's warning not to be overly optimistic. Analysts point out that market volatility will remain high in the short term, and low liquidity may lead to price fluctuations. Signs of a slowdown in the European economy have raised concerns about the European Central Bank's policy