European Markets Rally on Tech Gains

28 Nov 2024 , 04:00 PM

Following a two-day decline driven by political and economic unrest in France and the possibility of U.S. tariffs, tech shares led the gains as Europe’s main stock index began higher on Thursday.

With several important inflation reports being watched to determine the direction of rate reduction, the pan-European STOXX 600 index was up 0.6% at 0815 GMT.

After Bloomberg revealed that the U.S. administration’s China semiconductor restrictions might not be as harsh as anticipated, tech shares increased 1.85% while chip makers saw gains.

BE Semiconductor, ASML, and ASM International all saw gains of about 4%.

Following a decline to August lows in the previous session, France’s blue-chip index was up 0.5%.

The future of French Prime Minister Michel Barnier’s administration appears dismal, as his efforts to pass the 2025 budget through a divided parliament are more likely to bring down his shaky coalition. According to a poll, 53% of French citizens want the government to be overthrown.

According to Spain’s preliminary figures, headline inflation increased as expected in November, from 1.8% in October to 2.4%.

A day after persistently high U.S. inflation data raised concerns that the Federal Reserve might be wary of policy easing, Germany’s inflation data is due tomorrow and will help determine the European Central Bank’s trajectory towards rate cuts.

Since the U.S. market is closed for Thanksgiving, low trading volumes are anticipated.

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