Chinese stimulus policies boosted stock markets across Europe, particularly in sectors more exposed to Chinese consumer demand, such as luxury and automotive stocks. Both the Euro Stoxx 600 and the DAX reached new record highs. Following the Fed’s rate cut last week, risk-on sentiment continued to buoy global stock markets, bolstered by China’s substantial stimulus measures announced this week.
European markets have been the primary beneficiaries of China’s additional easing policies, with sectors such as luxury and automotive stocks - more exposed to Chinese markets - experiencing a strong rally. In commodities, metal prices surged, with gold reaching a new high once again, while silver and copper also soared amid optimism surrounding increased demand in China. In contrast, crude oil dropped to a two-week low after news that OPEC+ would proceed with a planned output hike in December.
Major benchmarks are set to extend weekly gains, with the Euro Stoxx 600 rising by 0.93%, the DAX climbing by 2.77%, the CAC 40 advancing by 3.
22%, and the FTSE 100 increasing by 0.67% over the past five trading days. Both the Euro Stoxx 600 and DAX reached new highs on Thursday, buoyed by gains in the luxury consumer and automotive sectors, spurred by Chinese policies.
Technology stocks also outperformed, mirroring Wall Street’s trend, as US chipmaker Micron raised its revenue forecast. Over the week, LVMH surged by 11.5%, ASML rose by 5.
38%, Hermès jumped by 13.63%, L’Oréal was u.