European Shares Rise with Tech Stocks Leading the Charge Ahead of ECB Decision

European shares opened higher on Thursday, driven by strong gains in technology stocks. Investors are keenly awaiting the European Central Bank's key interest rate decision, expected to lower borrowing costs by 25 basis points. The pan-European STOXX 600 index rose 0.6%, hitting a three-week high as markets also priced in further rate cuts this year.


Reuters | Updated: 06-06-2024 13:02 IST | Created: 06-06-2024 13:02 IST
European Shares Rise with Tech Stocks Leading the Charge Ahead of ECB Decision
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European shares opened higher on Thursday, boosted by technology stocks, while investors geared up for the European Central Bank's key interest rate decision later in the day.

The pan-European STOXX 600 was up 0.6% as of 0720 GMT, hitting its highest level in three weeks. Market participants will await the ECB's interest rate decision, due at 1215 GMT, where the central bank is expected to ease borrowing costs by 25 basis points (bps) from its present record level of 4%.

Money markets are presently pricing in 64 bps of cuts this year, as per LSEG data. Technology stocks continued to lead, up 1.8% to hit nearly a 24-year high, extending gains from the previous session. Healthcare also aided gains, up 1% as Novo Nordisk rose 3.5% to hit a fresh record high.

Helping the upbeat sentiment, the U.S. benchmark index S&P 500 and Nasdaq hit record closing highs on Wednesday after more evidence of easing labour market pressures firmed bets of a Federal Reserve rate cut in September. Among individual stocks, Remy Cointreau added 4.9% after the French cognac maker reported a smaller-than-expected drop in it annual profit and predicted a recovery over the coming year.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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