Stoxx 600 rises, DAX closes at a record high
written by Bella Palmer
The pan-European Stoxx 600 index was 0.8% higher at 524.57 points, while Germany’s DAX gained 0.7% to a record high
Europe’s Stoxx 600 rose on Thursday and Germany’s DAX closed at a record high, led by tech stocks, after weaker inflation data lifted hopes for interest-rate cuts and offset some disappointment around Nvidia’s quarterly results.
German inflation declined to 2% in August, data showed, below the 2.3% forecast by analysts. Prices in Spain also dropped more than expected, with EU-harmonised inflation coming in at 2.4% in August, its slowest pace in a year.
The pan-European Stoxx 600 index was 0.8% higher at 524.57 points, narrowly missing a new record-high close, while Germany’s DAX gained 0.7% to a record high.
The data strengthened hopes that the ECB 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, according to Russ Mould, investment director at AJ Bell.
The tech sector climbed 2.2%, the biggest sectoral gainer as traders shrugged off US chipmaker Nvidia’s quarterly forecast that failed to meet some investors’ high expectations.
Investors had braced for potential ripples through global equities if the AI company posted less-than-impressive results, but Europe’s chip stocks were broadly unbothered.
ASM International, STMicroelectronics and ASML Holding gained between 3% and 3.7%. Software company SAP SE jumped around 2%.
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 are not reliant upon seven companies worldwide, that is probably a healthy thing, Mould said, referring to the so-called Magnificent Seven influential stocks that include Nvidia.
The Stoxx 600 has added around 10% 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.
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