European Stocks Surge Amid Policy Decisions and Political Shifts

European stocks rose on Thursday, driven by gains in technology and resource sectors. The pan-European STOXX 600 increased by 0.5% as base metal prices rebounded, boosting shares like ArcelorMittal. Meanwhile, Euro zone banks benefited from consolidation news involving Banco BPM. Political shifts in Germany also captured the market's attention.


Devdiscourse News Desk | Updated: 07-11-2024 15:20 IST | Created: 07-11-2024 15:04 IST
European Stocks Surge Amid Policy Decisions and Political Shifts
Europe's main stocks index Image Credit:

European stocks climbed on Thursday, fueled by technology and resources shares, as investors awaited decisions from major central banks, including the Federal Reserve and the Bank of England (BoE).

The pan-European STOXX 600 rose 0.5%, with the basic resources index soaring thanks to a recovery in base metal prices. ArcelorMittal's shares surged nearly 5% after reporting third-quarter core profits that beat market forecasts.

In the banking sector, Euro zone banks gained 1.1%, driven by Banco BPM's plans to bid for full control of asset manager Anima Holding, which sent Anima's shares up by 9.3%. Additionally, Germany's political upheaval, following the collapse of its ruling coalition, piqued investor interest, contributing to the German benchmark index's 1.3% rise.

Later in the day, attention turned to rates as the BoE was expected to slash interest rates only for the second time since 2020, while the Fed was anticipated to facilitate monetary policy. Meanwhile, Sweden's central bank reduced its key interest rate to 2.75%, and Norway's bank kept its rate steady at 4.50%.

(With inputs from agencies.)

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