Written by João Manuel Vicente Mauricio and Ankika Biswas
(Reuters) – After two days of declines on concerns about possible U.S. tariffs and economic and political challenges in France, tech stocks led a rally in European stocks on Thursday, with investors now in the Interest rate cuts are closely monitoring inflation reports for clues about the future trajectory of interest.
The pan-European index rose 0.4% to 507.23 points. Trading volume was expected to be low as U.S. markets are closed for Thanksgiving.
The tech sector rose nearly 1%, the highest in a week, as chip stocks rose after Bloomberg reported that the U.S. government's chip curbs against China may be less stringent than expected. Recorded the day.
Shares of ASM International (AS:), BE Semiconductor and ASML (AS:) rose between 2% and 2.5%.
France's blue-chip index also gained 0.5%, regaining lost momentum after falling to August lows in the previous session.
Defense stocks led sectoral gains, helped by a 4.1% rise in Airbus.
Sentiment eased after European Central Bank President Christine Lagarde told the Financial Times that a global trade war was “not in anyone's interest.”
French government bonds held firm after Wednesday's plunge, with the risk premium over German bonds at their highest since the 2012 debt crisis.
French Prime Minister Michel Barnier's government is facing uncertainty as it struggles to win approval for its 2025 budget in a polarized parliament, raising the possibility that his fragile coalition will collapse. Facing the future.
“I don't think[Marine]Le Pen[of the far-right National Rally Party leader]will follow through on her threat to overthrow the government in the short term, but it will definitely remind the market of the precarious situation the country is in. '' said Michelle Tucker, senior European interest rate strategist at ING.
The banking sector also provided some support to the STOXX 600, rising 0.9%.
Inflation in Germany, Europe's largest economy, was flat in November at 2.4%, although inflation rose in some German states. Spain's headline inflation rate in November met expectations.
Inflation statistics for the euro zone, France and Italy are due to be released on Friday.
These reports reflected stubbornly strong US inflation statistics, raising concerns that the Federal Reserve would take a cautious approach to policy easing.
shares of direct line (LON:) The insurance industry soared 41.4% after the insurer rejected a £3.28bn takeover offer from a major rival. Aviva (LON:)'s share price fell by 2.3%.
on the other hand, grifolus (BME:) Shares fell 11.8%, extending losses into a second session after Canadian fund Brookfield withdrew its acquisition plan.
