(Bloomberg) — European equities notched their highest close on record as investor optimism over China’s stimulus spurred a rebound in sectors exposed to the world’s second-biggest economy. The Stoxx Europe 600 Index ended Thursday’s session with a gain of 1.3%.
Luxury goods firms, mining stocks and automakers, along with technology shares, led gains after Bloomberg reported that China is considering to inject as much as one trillion yuan ($142 billion) of capital into its biggest state-owned banks. While the developments in China supported the overall sentiment, some company updates triggered sizable downward moves among individual stocks. Hennes & Mauritz AB slumped as much as 8.
6% after the fast-fashion retailer said it’s unlikely to hit its operating margin target for the year following cold weather in Europe. Ubisoft Entertainment SA dropped as much as 21% after cutting its targets as it delayed its next Assassin’s Creed video game. Energy stocks also slipped, tracking a drop in the price of Brent crude.
Read: China Politburo Vows to Steady Housing Market, Up Fiscal Support Despite this week’s rally, European equities are trading more or less unchanged from their August close amid concerns over slowing economic momentum in the US and Europe. While the Federal Reserve’s interest-rate cut and Chinese stimulus measures have fueled gains in cyclical sectors, investors are on the lookout for fresh catalysts. Those could come from fresh rate-cut signals, with mo.