ROTTERDAM/LONDON: Automakers lifted the German DAX to a record high on Thursday, while broader European stocks inched towards all-time highs after the US Federal Reserve vowed to keep interest rates low despite forecasting a surge in economic growth.
An index of eurozone’s top 50 companies gained 0.4%, briefly surpassing its peak hit in February last year before the COVID-19 pandemic hammered financial markets.
Germany’s blue-chip DAX rose 0.9%, France’s CAC 40 was up 0.2%, while UK’s FTSE 100 slipped ahead of the Bank of England’s monetary policy decision due at 1200 GMT. The central bank is not expected to change its huge, crisis-fighting stimulus programme despite optimism about an economic recovery.
The pan-European STOXX 600 rose 0.3%, but eased from early highs due to losses in utilities, chemical and food & beverage stocks.
Volkswagen jumped 3.4%, sealing its position as the most valuable company in Germany’s DAX after it overtook software maker SAP on Wednesday.
Its shares have racked up a 28% gain so far this week and are on course to record the biggest weekly gain ever after it stepped up its switch to fully electric vehicles.
Swiss lender Credit Suisse gained 1.7% after it said it was overhauling its asset management business amid regulatory investigations into its dealings with collapsed Greensill Capital.
Telecoms equipment maker Nokia slipped 1.0% despite forecasting a pick up in profit margins to 10%-13% in 2023.
Swiss online pharmacy chain Zur Rose fell 7.5% to the bottom of STOXX 600 after disappointing full-year results and outlook.
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