European Markets Reach New Heights Amid Rate Cut Anticipation
The European stock market soared to record highs, driven by real estate and technology sectors, as investors anticipated an interest rate cut from the European Central Bank. The STOXX 600 rose 0.5%, led by gains in German and Spanish markets. Key players included ASML and Siemens Energy.
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The European stock market reached a record peak on Thursday, buoyed by real estate and technology stocks, with investors closely watching for an anticipated interest rate cut from the European Central Bank (ECB).
The STOXX 600 index, encompassing major European stocks, gained 0.5%, marking its third consecutive day of record growth. Germany's flagship index climbed 0.3%, also hitting an iconic high. Investors are expecting the ECB to potentially lower the deposit rate by 25 basis points to 2.75%, the lowest since early 2023, contrasting the U.S. Federal Reserve's decision to maintain current rates.
Senior analyst Daniela Hathorn from Capital.com commented on the shifting global economic narrative, noting Europe's strategic moves amid waning U.S. exceptionalism. Significant gains were observed in the rate-sensitive real estate sector and the technology sub-index. Meanwhile, top chip equipment manufacturer ASML and AI-focused companies like Siemens Energy posted notable gains. In Spain, bank earnings propelled the IBEX index, while in Germany, Deutsche Bank's disappointing earnings led to a sharp stock decline.
(With inputs from agencies.)