European Stocks Gain as Fed Rate Cut Hopes Boost Sentiment

European stocks advanced Thursday on optimism that the Federal Reserve is poised to cut interest rates amid signs of a slowdown in the US labor market.

The Stoxx Europe 600 Index rose 0.5% at the close. Auto stocks led gains after Bank of America Corp. upgraded its views on carmakers, including Mercedes-Benz Group AG and Porsche SE. Industrials stocks also outperformed, while travel and leisure as well as health care shares were among the biggest laggards.