Dec 12 (Reuters) - European shares opened higher on Friday, tracking overnight gains on Wall Street after the S&P 500 closed at a record high as investors globally cheered the Federal Reserve's interest rate cut and remained optimistic about more in 2026.
The pan-European STOXX 600 was up 0.3% at 582.96 by 0807 GMT, a day after logging its biggest one-day jump in over two weeks.
Major regional bourses were also higher, with Spain's IBEX up 0.6% and Germany's DAX up 0.5%.
Banks led the charge, up 0.9%.
BNP Paribas gained 1.5% after the French lender said it entered exclusive talks to sell its 67% stake in its Moroccan unit BMCI to Holmarcom Group.
Markets tracked gains on Wall Street overnight, where the S&P 500 and the Dow closed at record highs, following comments from the Fed that investors viewed as less hawkish than expected.
After delivering an anticipated 25-basis-point cut on Wednesday, the central bank said that there might not be a drop in borrowing costs in the near term till there is more clarity on the labor market.
Investors moved out of traditionally defensive sectors such as consumer staples and healthcare, among the only decliners on the index.
Among other movers, retailers Adidas and Puma gained over 1.7% each after U.S. peer Lululemon Athletica raised its annual profit forecast.
(Reporting by Purvi Agarwal in Bengaluru)
