European Stocks Rise Sharply, Macro Sentiment a Market Catalyst
European stock markets closed higher at record levels on Friday (July 3), supported by improving macroeconomic sentiment toward the stock market. The gains were also supported by a rebound in companies exposed to artificial intelligence (AI)-based trading.
The Euro STOXX 50 Index rose 0.9% to 6,417, while the STOXX Europe 600 gained 0.7% to 653. Thin trading due to the US market holiday focused investors' attention on the technology sector, which began to pare losses after a volatile week.
ASML shares rose 3.7%, tracking gains in technology stocks in Asia, while Infineon added 1.2%. Companies involved in data center operations also rallied, with Siemens rising 2.5% and Schneider Electric adding 1.5%. Utilities stocks such as Iberdrola and Enel each gained 1.5%. On the banking side, lower short-term bond yields also supported sentiment. Shares of BBVA and Deutsche Bank each rose around 1%. Although long-term bond yields remained high, pressure on short-term bonds provided room for strengthening in the financial sector.
European stock markets strengthened further after a weak US jobs report and Eurozone inflation data influenced central bank policy expectations. This prompted investors to reconsider the potential future direction of interest rates, while maintaining appetite for riskier assets.
Source: Newsmaker.id
