European Shares Surge on Chinese Stimulus Hopes and Micron's Strong Forecast

European shares surged on Thursday, propelled by China-exposed luxury and mining stocks, driven by news of aggressive economic stimulus from China. The STOXX 600 index hit a new high. Chip stocks also soared following a robust revenue forecast from U.S. firm Micron. Key sectors, such as technology, showed significant gains.

European shares surged on Thursday, driven by strong performances in China-exposed stocks like luxury and miners, following news of aggressive Chinese economic stimulus. Chip stocks also experienced a boost after U.S. firm Micron issued a strong revenue forecast.

The pan-European STOXX 600 index rose 1.3% to close at 525.61 points, marking an all-time closing high, just shy of the intraday record. Chinese leadership pledged crucial fiscal spending to reach this year's target of approximately 5% economic growth, spurring market expectations for additional stimulus beyond the measures already announced this week.

China-exposed luxury firms, such as LVMH and Hermes, saw gains of around 9% each, while a gauge of Europe's top luxury firms increased by 6.5%. Mining stocks climbed 4.3% on rising base metal prices. Europe's technology sector jumped 3%, buoyed by semiconductor companies' gains after Micron Technology forecast stronger-than-expected revenue due to AI demand. However, heavyweight energy shares dropped 3% as crude oil prices fell.

(With inputs from agencies.)