FRANKFURT: European shares closed at a record high for a second session on Thursday, driven by a rally in industrials and chip-related stocks, while expectations of US interest rate cuts this month also buoyed sentiment.
The pan-European STOXX 600 index was up 0.5 percent at its record close, having earlier also hit an all-time intraday high. Most regional bourses also climbed, with Germany leading gains with a 1.3 percent increase.
Industrial stocks were the biggest boost to the index, up 1.5 percent, with heavyweights such as Siemens up 4.2 percent and Schneider adding 2.3 percent.
Technology stocks rose 2.3 percent, tracking gains in global chip-related stocks. Sentiment was further boosted after Korea’s Samsung Electronics and SK Hynix signed letters of intent to supply memory chips for OpenAI’s data centres.
ASML gained 4.3 percent and ASMI jumped 6.5 percent, pushing the main Dutch index to a record high. “I see further room (for the rally) to run judging from the breadth in the tech rally, as it’s also the average tech stock participating as well,” said Lale Akoner, global market analyst at eToro.
Autos climbed 2.4 percent, boosted by an 8.3 percent gain in Stellantis after market data showed an improved trend in new car sales for the group in Italy and the US
Ferrari gained 2.7 percent after HSBC upgraded its rating on the Italian carmaker to “buy” from “hold”.
Healthcare stocks extended their rally from the previous session after a US-Pfizer deal on prescription drug prices on Tuesday helped reduce some uncertainty in the sector.
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