European stocks post gains for second consecutive week
European stocks rose, heading for their biggest weekly gain in 12 weeks, as traders assessed US President Donald Trump's nominee for a seat on the Federal Reserve Board of Governors (the US central bank)
Shares in Danish drugmaker Novo Nordisk rose 3.2%, making it one of the best performers on the Stoxx 600 index, after a late-stage study by rival Eli Lilly showed its weight-loss drug results were weaker than Novo Nordisk's injectable obesity drug, Wegovi.The pan-European STOXX 600 index gained 0.2% by 07:15 GMT. Most other regional markets also rose, with Spain's benchmark IBEX index climbing 0.4%, according to Reuters.Britain's FTSE 100 index rose 0.2%, a day after the Bank of England cut interest rates by a quarter of a percentage point in a close five-to-four vote, amid concerns about inflation that overshadowed the decision.
What’s happening:-
European stocks closed mostly higher on Thursday after recording gains for three straight sessions.
What happened:-
Rising speculations of an interest rate cut by the US Federal Reserve next month continued to provide support to risk sentiment.
Investors also digested the latest economic reports from the Eurozone released on Thursday.
European stocks post biggest jump in two weeks
Why it matters:-
Investors are increasingly confident of the Fed announcing a cut in its benchmark interest rates in December, following data signalling weakness in the US economy.
Prospects of lower interest rates stimulating the world’s largest economy lend support to the European stock market.
Data released on Thursday showed that the Eurozone’s consumer confidence came in unchanged from the previous month at -14.2 in November.
The Economic Sentiment Indicator rose to 97.0 in November from 96.8 in the previous month, reaching its highest level since April 2023.
Bank lending to households in the Eurozone climbed 2.8% year-over-year to €7.07 trillion in October, recording the fastest pace since March 2023 and topping market estimates of 2.6%.
Automobile stocks were the best performers on Thursday, driven by a 1.5% gain in Ferrari’s stock. Food and beverage stocks also recorded sharp gains during the session. However, healthcare stocks remained under pressure, with declines in the shares of Roche and Novo Nordisk.
European stocks rose after heavy selling, while Swiss stocks declined
Shares of Puma jumped around 19% on Thursday as Chinese companies Anta Sports Products and Li Ning considered a potential takeover of the company. Allfunds Group’s stock recorded its biggest one-day surge on record, after the company entered into talks to be bought by Germany’s Deutsche Boerse.
US equity markets were closed for the Thanksgiving holiday on Thursday, which resulted in lighter-than-usual trading volumes in the global financial markets.
The STOXX Europe 600 Index gained 0.14% to close at 575.00, nearing a two-week high. However, the index is still around 1.9% off from its record high reached earlier during the month, after falling sharply amid concerns around tech valuations being too high.
Major regional bourses also settled slightly higher, with London’s FTSE 100 gaining 0.02% to 9,693.93 following the announcement of the autumn budget. Germany’s DAX 40 climbed 0.18% to settle at 23,767.96, while France’s CAC 40 rose 0.04% to 8,099.47 on Thursday.
European stocks rise
What to watch:-
Investors await the release of economic data on European Central Bank’s consumer inflation expectations (1300 UAE Time) today. Median consumer inflation expectations in the Eurozone, which eased to 2.7% in September, are expected to decline further to 2.6% in October.
Data on inflation from France, Spain and Germany will also remain in focus today.