FRANKFURT: European shares closed higher on Thursday, buoyed by President Donald Trump’s address to the World Economic Forum in Davos, while declines in heavyweight technology stocks tempered gains.
The pan-European STOXX 600 climbed 0.4% to close at 530.34 points, marking its seventh consecutive day of gains - its longest winning streak in over a month.
The benchmark had hit an all-time intraday high on Wednesday.
The STOXX 600 experienced a late-session jump as President Donald Trump delivered a speech remotely at the World Economic Forum in Davos, Switzerland. In his address, Trump called for an immediate reduction in interest rates and urged other nations to adopt similar measures.
He also said businesses should make their products in the US if they want to avoid facing a tariff.
Limiting gains, were technology stocks that slid 1.5%, led by a 4.4% decline in computer chip equipment supplier ASML.
Puma slumped 22.8% as it delayed its margin target and said it would cut costs after reporting a worse-than-expected annual profit. Rival Adidas had on Tuesday reported better-than-expected preliminary fourth-quarter results. Tech stocks had rallied in the previous session, spurred by US President Donald Trump’s mammoth spending plans for artificial intelligence infrastructure.
Investor anxiety is mounting as Trump’s persistent protectionist rhetoric looms large, with a pledge to impose tariffs on the European Union expected by February 1.
This backdrop of uncertainty is compounded by the anticipation of flash PMI releases for January from the Eurozone, Germany, France and Britain on Friday.
In 2024, investors faced the dual challenge of interpreting uneven economic data that signalled a sluggish recovery, while also navigating the dollar’s surge following the US election results in November.
Meanwhile, Euro zone consumer confidence held steady, offering little solace, as French industrial confidence took a hit, dropping to 95 points in January from December’s 97.
The European Central Bank prepares to convene next week to decide on interest rates.
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