European stock indices witnessed a positive surge at the onset of Wednesday’s trading. The rise was majorly attributed to the shares of mining companies, which benefited from escalating metal prices. Concurrently, Switzerland’s pharmaceutical powerhouse, Roche, played a pivotal role in supporting healthcare company stocks.
By 07:07 Greenwich Mean Time (GMT), the European “STOXX 600” index had ascended by 0.4%. Specifically, shares from mining companies experienced a boost of 0.9%, propelled by the rising prices of the majority of industrial metals.
Roche’s shares notably jumped by 3.1%, following the unintended disclosure of trial data concerning its innovative lung cancer treatment. This revelation saw the broader healthcare sector index climb by 0.8%.
Further, on Tuesday, European shares continued their upward trend, with stocks from chip manufacturing firms steering a bullish wave for tech company shares, in anticipation of NVIDIA’s earnings report. Closing figures showed the “STOXX 600” European index up by 0.7%. Impressively, in the week’s initial trading sessions, the index also recorded a 1.2% surge.
China cut its one-year benchmark lending rate as authorities seek to ramp up efforts to stimulate credit demand, but surprised markets by keeping the five-year rate unchanged.
“It is welcome to see some policy action… the question is whether it’s enough to really stem what’s a very difficult period for China at the moment,” said Louise Kernohan, portfolio manager at Newton Investment Management.
China-exposed luxury heavyweights LVMH, Kering and Hermes gained around 1% each. Euro-zone government bond yields were mixed as investors balanced expectations for a higher-for-longer rates scenario against further signs of weakness from German data and some appetite for safe-haven assets due to concerns about China.
Germany’s DAX rose 0.6% even as official data showed German producer prices in July fell more than expected. Wall Street futures rose after major U.S stock indexes had logged weekly declines.
Investor focus would be now on the Jackson Hole Symposium later this week, where European Central Bank President Christine Lagarde and U.S. Federal Reserve Chairman Jerome Powell are expected to provide clues about the interest rate outlook.
Demant gained 4.0% after JP Morgan upgraded the Danish hearing aid maker to “Overweight” from “Neutral”.
Adyen slumped 5.6% after two brokerages downgraded the Dutch digital payments firm’s stock after the company missed half-year expectations on Aug. 17.
Saipem jumped 5.4% after JP Morgan assumed coverage on the Italian drilling and construction company with an “Overweight” rating.
