European Shares Soar Amid Global Tech Rally

European shares reached a record high, fueled by a global surge in chip-related stocks and promising signs of a Federal Reserve interest rate cut. The STOXX 600 index and regional bourses gained, driven by technology and autos sectors, while healthcare stocks continued to rally.

European shares surged to historic highs on Thursday, propelled by a worldwide upswing in chip-related stocks. Optimism prevailed amid expectations that the U.S. Federal Reserve will lower interest rates later this month.

The pan-European STOXX 600 index advanced 0.7% to 568.7 points by 0845 GMT, setting an all-time record. Numerous regional markets rose in tandem, with Germany witnessing a robust 1.3% hike. Technology stocks climbed 2.3%, reminiscent of the gains seen overnight on Wall Street. Investor sentiment received an additional boost following the announcement that Korea's Samsung Electronics and SK Hynix will supply memory chips to OpenAI's data centers.

In particular, ASML surged by 4.3% and ASMI by an impressive 6.2%, propelling the primary Dutch index to unprecedented heights. "In the long term, we're optimistic about European tech stocks due to AI," remarked Anthi Tsouvali, a multi-asset strategist at UBS. Meanwhile, the autos sector witnessed a 2.3% increase, significantly buoyed by a 7% surge in Stellantis shares after favorable market data revealed an improvement in Italian and U.S. car sales.

(With inputs from agencies.)