(Bloomberg) — European stocks opened higher and within striking distance of their peak record levels as they tracked a tech-fueled rally on Wall Street.
The Stoxx Europe 600 Index rose 0.2% to 525.90 at 9:08 a.m. in Paris, just short of its September 27 record of 528.08 points. Technology stocks were among gainers, galvanized by Nvidia shares which closed at a record high in New York after the company reassured investors about product delays and long-term growth prospects.
Among individual stocks, Ericsson AB rose 9.8% after its earnings beat analysts’ estimates in the third quarter, as the Swedish telecom equipment maker’s deal with US carrier AT&T Inc. began to pay off.
Shares in ABN Amro Bank fell 0.9% after the Dutch government said it intended to pare its holding to about 30%.
Energy stocks led declines after oil prices dropped as concerns eased about Israel attacking Iranian energy facilities.
“Markets seem only to be taking the good news, and it seems a bit complacent to us with the geopolitical risk””, said Yann Azuelos, senior portfolio manager at Mirabaud in Paris.
“The trend is quite bullish,” he added, noting a very high degree of investor optimism all-round about China’s stimulus plans, macro-economic development and earnings growth moving into 2025.
European Earnings
Some of Europe’s largest companies are set to report this week, starting after the close on Tuesday with French luxury behemoth LVMH.
While data so far point to a gentle cooling in the euro-area economy, rather than a rapid downturn, concerns are mounting about French finances and Germany’s lackluster economy. According to a Bloomberg survey, Germany is suffering from a mild recession and output across the whole of 2024 will be flat — underscoring the malaise in Europe’s largest economy.
The downturn is likely to see the European Central Bank cutting interest rates later this week, according to economists surveyed by Bloomberg.
For more on equity markets:
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Publish date : 2024-10-15 07:18:00
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