European shares surged to near six-month highs on Thursday, as investors cheered US Federal Reserve Chair Jerome Powell’s signals for smaller interest rate hikes and also China’s decision to soften his tone on the strict restrictions of Covid-19.
The pan-European STOXX 600 index rose 0.6% after rising 6.8% in November, its best month since July.
Technology stocks were among the biggest bulls on Thursday, with traders attributing the move to a rise in salesforce’s earnings forecast.
Energy stocks fell, capping gains in the broader index as oil prices fell amid uncertainty ahead of Sunday’s OPEC+ meeting. [OU] Building up risk appetite, China is expected to announce an easing of Covid-19 protocols in coming days after resentment over the world’s toughest restrictions fueled nationwide protests.
Powell provided further relief after he said the Fed could slow its rate hikes “as early as December”.
“European markets are indeed embracing Powell’s pitch that has been well received by markets elsewhere. This is one of the main drivers of what we are currently seeing,” said Bert Colijn, Senior Eurozone Economist at ING.
“At the same time, if we see measures in China becoming more lenient, that would be a good sign for global economic activity.”
🇧🇷 The FTSEurofirst 300 index was up 0.54% to 1,750 points.
🇧🇷 In LONDON, the Financial Times index advanced 0.09%, to 7,579 points.
🇧🇷 In FRANKFURT, the DAX index was up 0.34% to 14,446 points.
🇧🇷 In PARIS, the CAC-40 index gained 0.01%, at 6,739 points.
🇧🇷 In MILAN, the Ftse/Mib index appreciated by 0.51%, at 24,736 points.
🇧🇷 In MADRID, the Ibex-35 index registered an increase of 0.77%, to 8,427 points.
🇧🇷 In LISBON, the PSI20 index appreciated by 0.83%, to 5,911 points.
Source: CNN Brasil
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