Luxury Stocks Propel European Shares to New Heights

European shares saw a significant rise, bolstered by Richemont's favorable earnings and strong performance from semiconductor companies. The luxury sector, led by brands like Cartier, LVMH, and Dior, showcased notable growth. The tech index also climbed following TSMC's earnings report, while macroeconomic factors suggest cautious optimism.

European shares experienced a notable increase of nearly 1% on Thursday, driven by robust performances in the luxury retail and technology sectors. Luxury stocks soared after Richemont surpassed earnings expectations, while semiconductor firms flourished following TSMC's record-breaking quarterly profit.

The pan-European STOXX 600 reached 519.81 points, marking its highest level since mid-December, largely influenced by France's benchmark index, which reached a near three-month high. Major luxury brands, including Cartier-owner Richemont, saw significant gains, highlighting resilience in the high-end market.

The technology index mirrored this positive trend, spurred by TSMC's forecast of substantial revenue growth. Despite geopolitical uncertainties and evolving economic policies, analysts remain optimistic about future growth potential, pointing to potential surprises in Europe's financial outlook.

(With inputs from agencies.)