Germany’s stock index hit a new record high on Wednesday after disappointing industrial orders data in the country supported bets on a rapid interest rate cut by the European Central Bank next year.
The pan-European STOXX 600 index closed 0.52% higher at 470.06 points, while Frankfurt’s DAX index rose 0.75% to 16,656.44 points.
Data showed a surprising drop in German industrial orders in October, down 3.7% from the previous month, reinforcing expectations of interest rate cuts by the ECB next year as it shifts to a more aggressive approach. accommodative (soft on inflation) by Isabel Schnabel, German member of the ECB council on Tuesday.
Stocks received a boost from euro zone government bond yields, which fell to multi-month lows.
“We are basically discussing when the rate cuts might come, but they will be the first in Europe as Europe was the first to enter the economic recession,” said Ben Laidler, global markets strategist at investment platform eToro.
The basic resources sector gained 1.6%, tracking higher prices of most base metals, while the travel and leisure sector rose 2.3%, with TUI rising by 14.8%, after Europe’s largest travel operator forecast a strong jump in operating profit in 2024.
IN LONDON, the Financial Times index advanced by 0.34%, to 7,515.38 points.
IN PARIS, the CAC-40 index gained 0.66%, to 7,435.99 points.
IN MILAN the Ftse/Mib index grew by 0.81%, to 30,326.29 points.
In MADRID, the Ibex-35 index recorded an increase of 0.19%, to 10,258.10 points.
In LISBON, the PSI20 index increased by 0.51%, to 6,609.90 points.
Source: Terra
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