EUROPE’S Stoxx 600 rose on Thursday and Germany’s DAX closed at a record high, led by tech stocks, after softer inflation data lifted hopes for interest-rate cuts and offset some disappointment around Nvidia’s quarterly results.
German inflation eased to 2 per cent in August, data showed, below the 2.3 per cent forecast by analysts. Prices in Spain also eased more than expected, with EU-harmonised inflation coming in at 2.4 per cent in August, its slowest pace in a year.
The pan-European Stoxx 600 index was up 0.8 per cent at 524.57 points, narrowly missing a fresh record-high close, while Germany’s DAX rose 0.7 per cent to a record high.
The data strengthened hopes that the European Central Bank would cut rates again in September, as policymakers have stressed the need to see inflation continue downward.
“(The data) is seen as giving the ECB a bigger chance to be a little more loose with policy than perhaps people have expected,” said Russ Mould, investment director at AJ Bell.
The tech sector jumped 2.2 per cent, the biggest sectoral gainer as traders shrugged off US chipmaker Nvidia’s quarterly forecast that failed to meet some investors’ lofty expectations.
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Investors had braced for potential ripples through global equities if the AI darling posted less-than-impressive results, but Europe’s chip stocks were broadly unbothered.
ASM International, STMicroelectronics and ASML Holding rose between 3 per cent and 3.7 per cent. Software company SAP SE climbed nearly 2 per cent.
“It’s quite nice that the European markets have taken Nvidia results in their stride, and not been too influenced by them either way. If we’re not reliant upon seven companies worldwide, that’s probably a healthy thing,” Mould said, referring to the so-called Magnificent Seven influential stocks that include Nvidia.
The Stoxx 600 has gained nearly 10 per cent from its six-month lows in August, following a steep global selloff, as expectations have increased for easier monetary policy in the US and Europe.
Euro-zone inflation and unemployment data will be closely watched on Friday.
Delivery Hero leapt 12.2 per cent, the biggest Stoxx 600 gainer after the German online takeaway food company reported stronger-than-expected growth it its second-quarter gross merchandise value, and said it was preparing an initial public offering of its Emirati subsidiary Talabat on the Dubai Stock Exchange.
French spirit makers’ shares rose after China dropped provisional measures on brandy imported from the European Union.
Remy Cointreau rose 2 per cent, while Pernod Ricard also gained 2 per cent after forecasting sales would grow in 2025. France’s CAC 40 was up 0.8 per cent.
All Stoxx 600 sectors were in the green, barring utilities, insurance and real estate which slipped between 0.2 per cent and 1.8 per cent. REUTERS
