European stocks rise for first session in 5 after Powell's remarks

European shares rose on Thursday morning for the first time in the last five sessions, after Federal Reserve Chairman Jerome Powell's comments before the US House of Representatives, which once again raised prospects around a US rate cut later this month.

The Stoxx Europe 600 index rose 0.2% by 09:25 GMT, and the index ended yesterday's session lower by 0.2%, the fourth consecutive daily loss, on fears of the global economy weakening.

Stoxx Europe Index rose on Thursday morning on its way to the first gain in the last five sessions, with the majority of European stock exchanges and major sectors in the positive region.

The energy sector led the gainers list in Europe with a gain of more than 1.2%, taking advantage of the rise in the oil prices to the highest level in six weeks, after a significant drop in US crude inventories.

Jerome Powell told the House of Representatives Financial Services Committee on Wednesday that the US central bank will act as needed to maintain growth and the economic gains and that the mounting risks weigh heavily on economic expectations.

The Fed Chairman pointed to the weaknesses of the global economy and its negative impact on the US economy, coupled with uncertainty about the repercussions of the trade disputes that the US is engaged in with China and other countries.

Those comments increased the likelihood that the Fed would cut interest rates by a quarter percentage point at its next meeting late this month, and also boosted the possibility of a half-percentage point cut, but these prospects remain below 50%.

S&P 500 futures rose by more than 0.3%, and the index ended yesterday's session on Wall Street up by 0.45%, the second daily gain in a row, recording a new record high of 3,002.98 points.

Euro Stoxx 50 rose by more than 0.2%, while in France, the CAC 40 index rose 0.2%, Germany's DAX rising by 0.1%, and in London, the FTSE 100 index rose about 0.1%.