European stocks hit two-week high as Wall St mood brightens

European stocks hit a two-week high on Thursday, as a surprise profit by Swedish retail giant H&M and fading concerns about stress in the banking sector sparked a rally on Wall Street overnight. The pan-European STOXX 600 index rose 0.6% by 0708 GMT, hitting it strongest level since March 13, after major U.S. stock indexes rallied on Wednesday.

European stocks hit a two-week high on Thursday, as a surprise profit by Swedish retail giant H&M and fading concerns about stress in the banking sector sparked a rally on Wall Street overnight.

The pan-European STOXX 600 index rose 0.6% by 0708 GMT, hitting it strongest level since March 13, after major U.S. stock indexes rallied on Wednesday. The benchmark S&P 500 closed above its 50-day moving average for the first time since March 6, before the onset of the bank crisis. H&M climbed 7.3% after the world's second-biggest fashion retailer reported a surprise operating profit for the December-February period but warned that overall sales for the spring season had been delayed by cold weather.

The wider retail index climbed 1.8%. European banks rose 0.4% to hit a one-week high as investors took heart from the sale of failed Silicon Valley Bank's assets and takeover of embattled Swiss lender Credit Suisse.

Real estate shares jumped 2.3%, extending a bounce from five-month lows hit earlier this week. Danish wind turbine maker Vestas climbed 4.9% after it won an order in Brazil.

 

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