European Shares Surge as Healthcare and Tech Lead Gains Amid Fed Rate Cut Speculation

European stock markets reached a near two-week high, driven by substantial gains in healthcare and technology sectors. Anticipation of a U.S. Federal Reserve interest rate cut next month bolstered investor sentiment. Germany's DAX index also rose following easing inflation data, while European earnings remained resilient amid global geopolitical tensions.

European stock markets rose to a near two-week high on Wednesday, driven by strong performances in healthcare and technology shares. Investor confidence was bolstered by nearly assured expectations that the U.S. Federal Reserve will cut interest rates next month, pushing the pan-European STOXX 600 index up by 0.5%.

The healthcare sector emerged as the top performer, climbing 1.6% and marking its fifth consecutive session of gains. Notably, companies like Genmab and Bayer saw significant increases. Meanwhile, the technology sector bounced back from recent lows, reinforcing positive market sentiment.

Speculation about a September interest rate cut by the Fed gained traction following benign U.S. inflation data, with policymakers anticipating a possible 50 basis point reduction. This optimism contributed to Germany's DAX rising by 0.7% after earlier declines, as easing inflation figures were confirmed.

(With inputs from agencies.)