Record Highs: European Shares Soar Amid Rate Cut Expectations

European shares reached record highs, led by gains in industrial and technology stocks. The STOXX 600 index rose, buoyed by anticipation of U.S. interest rate cuts. Technology stocks saw significant growth, bolstered by agreements among major chip manufacturers. Investors watch U.S. governmental developments closely amidst economic data uncertainties.

European shares achieved record highs for a second consecutive session on Thursday, driven by a surge in industrial and technology stocks. The pan-European STOXX 600 index climbed 0.5% to close at a record, bolstered by expectations of U.S. Federal Reserve rate cuts slated for later this month.

German markets led the charge with a 1.3% increase, supported mainly by industrial stocks such as Siemens, which gained 4.2%. The technology sector also saw robust growth, rising 2.3% due to gains in global chip stocks. Prominent agreements among Samsung Electronics, SK Hynix, and OpenAI fueled this rally, propelling ASML and ASMI stocks to impressive highs.

While healthcare and automotive stocks maintained their upward trajectory, broader market sentiment remained focused on potential U.S. government actions and the impact on key economic indicators. The STOXX has increased by over 11% this year, underlining strong performance compared to U.S. markets.

(With inputs from agencies.)