European Shares Surge Amid Tech and Real Estate Rally

European shares rose on Thursday, led by gains in technology and real estate stocks. The pan-European STOXX 600 increased by 0.4%, with technology stocks rising 1.2% and real estate up by about 1%. Swiss equities also gained after the Swiss National Bank cut interest rates, while UK and German stocks had mixed performances.

Reuters | Updated: 20-06-2024 14:04 IST | Created: 20-06-2024 14:04 IST
European Shares Surge Amid Tech and Real Estate Rally
AI Generated Representative Image

European shares gained on Thursday, boosted by an advance in technology and real estate stocks, while Swiss equities gained after the central bank continued to loosen monetary policy.

The pan-European STOXX 600 gained 0.4% as of 0820 GMT. Technology stocks led the gains, rising 1.2%, while real estate jumped about 1%. Lifting the tech index was ASMI, which jumped 5.1% after Morgan Stanley upgraded the semiconductor equipment manufacturer to "overweight" from "equal-weight".

Switzerland's benchmark index gained 0.4% after the Swiss National Bank cut interest rates by 25 basis points to 1.25%, maintaining its position as a front-runner in the global policy easing cycle. Norway's central bank on the other hand, opted to hold its key policy interest rate at a 16-year high of 4.50% and said a cut was expected in 2025. Norwegian stocks were flat.

Later in the day, the Bank of England will announce its policy decision. "The market is positioning for rate cuts, not just in the UK ... there's a generic assessment going on in terms of how much easing can we expect in light of the uncertainty regarding the French elections," Bas van Geffen, Senior Macro Strategist at Rabobank said.

UK's FTSE 100 was last up 0.2%. On the data front, German producer prices fell slightly more than expected in May, while a preliminary reading of euro zone June consumer confidence is due later in the day.

German biotech firm Evotec jumped 12.3% after a media report that the company is speaking to defence advisers following the recent fall in share price. Millennium BPC rose 6% after Jefferies upgraded the Portuguese bank's rating to "buy".

Danone said it will step up its focus on health and medical nutrition as it seeks to grow sales and boost cash generation from 2025 to 2028. Shares of the French food group fell 3.8% with traders pointing to the company effectively giving no guidance upgrade in its medium-term targets. Tate & Lyle fell 2.7% after the British food ingredients maker said it will buy U.S.-based CP Kelco for $1.8 billion from J.M. Huber Corporation. Its shares were trading ex-dividend.

Lufthansa shed 2.6% after brokerage Stifel downgraded the German carrier's rating to "hold" from "buy", while Ryanair lost 2% after UBS cut its rating to "neutral" from "buy".

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

Give Feedback