Chinese stimulus policies have had a significant impact on stock markets across Europe, with sectors such as luxury and automotive stocks benefiting the most. The Euro Stoxx 600 and the DAX reached new record highs, driven by China’s measures and a continued risk-on sentiment following the Fed’s rate cut. Metal prices surged, especially gold, silver, and copper, on optimism surrounding increased demand in China.
In Europe, major benchmarks such as the Euro Stoxx 600 and the DAX experienced gains, with sectors like luxury consumer goods and technology performing well. LVMH, ASML, and Hermès saw significant increases in their stock prices, while mining stocks also rose. However, energy stocks underperformed due to falling oil prices. Commerzbank shares surged following an increased stake by UniCredit, raising the possibility of a full takeover.
Meanwhile, in the US, stock markets are expected to end the week higher due to the Fed’s rate cuts. Materials, technology, and consumer discretionary sectors outperformed, while the energy sector slumped. Micron’s positive guidance boosted the semiconductor sector, and the US manufacturing PMI suggested a gloomy economic outlook despite positive GDP growth and employment data.
In the Asia Pacific region, Chinese stock markets surged after the central bank’s easing measures, with the Hang Seng Index and other benchmarks rising significantly. Japan’s Nikkei 225 Index also saw gains, while the Australian market underperformed due to the Reserve Bank of Australia’s hawkish stance. The country’s consumer price index remained above the target level of 2%, leading to a restrictive monetary policy.
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