European Stocks Gain, CAC Rises Ahead of No-Confidence Vote
European stocks advanced for a fifth consecutive session as German shares hit a fresh record. Investors were watching the no-confidence vote taking place in France.
The Stoxx Europe 600 Index rose 0.4% by the close, with retail stocks leading the gains. Spanish retailer Inditex SA jumped to a record high ahead of earnings and Zalando SE traded at its highest level in a year and a half. The health care sector lagged as Novartis AG shares fell following a downgrade by HSBC.
Marine Le Pen, the leader of the far-right National Rally, said her party will vote for the left coalition’s no-confidence motion against Prime Minister Michel Barnier’s government during the parliamentary debate that kicked off at 4:00 p.m. local time. France’s blue-chip index CAC 40 has shrugged off the news, rising 0.7%.
Elsewhere, Germany’s DAX advanced 1.1% after breaching the 20,000-point level in the previous session, with one of its big components, software maker SAP SE, advancing. The UK’s export-heavy FTSE 100 underperformed as the pound strengthened against the greenback.
European stocks had been lagging US peers following a record high in September as concerns about potential US tariffs, a weaker regional economy and geopolitical risks continue to mount. The political turmoil in France has added to investors’ woes, with the government unable to find common ground on the 2025 budget.
Focus will turn to a moderated discussion with Federal Reserve Chair Jerome Powell later Wednesday for clues on a possible interest rate cut in December. Traders are currently pricing in a 76% chance of a quarter-point cut at the next meeting.
Source : Bloomberg
