Most major European stock indexes rose on Thursday, boosted by optimism over new economic stimulus measures in China, as investors awaited comments from European Central Bank President Christine Lagarde.
The STOXX 600 index rose 1% to 524.48 points, just below its all-time high of 526.66.
Chinese authorities have pledged to make “necessary fiscal spending” to meet this year’s 5% economic growth target, sending Chinese stocks soaring, with the CSI300 index and Hong Kong’s Hang Seng index up more than 4%.
“There is optimism that China may offer more stimulus in the future, in which case we could see these gains continue,” said Fiona Cincotta, senior market analyst at City Index.
Luxury stocks lifted the benchmark index, with LVMH, Hermès, Dior, Kering and Burberry up between 5% and 7%. European luxury companies rely heavily on Chinese consumer spending.
China is also considering injecting up to 1 trillion yuan ($142.39 billion) of capital into its major banks to boost their capacity in a bid to prop up the economy.
The European technology sector also contributed to gains, up 3.1%, with shares of European semiconductor companies rising after Micron Technology forecast higher-than-expected revenues due to demand for artificial intelligence.
A nearly 4% increase in the basic resources sector also provided support to rising copper prices. [MET/L]
Investors are awaiting comments from several ECB board members, with Lagarde’s comments, at 10:30 a.m. (Brasilia time), taking center stage.
In LONDON, the Financial Times index rose 0.37% to 8,298 points.
In FRANKFURT, the DAX index rose 1.07 percent to 19,120 points.
In PARIS, the CAC-40 index gained 1.41% to 7,672 points.
. In MILAN the Ftse/Mib index advances by 1.33%, to 34,289 points.
. In MADRID, the Ibex-35 index rose 1.02% to 1,913 points.
In LISBON, the PSI20 index fell by 0.43% to 6,764 points.
Source: Terra
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