During Thursday’s session, the STOXX 600 of Europe surged while the DAX index of Germany touched its all-time high at the end minute of the session. While the decline in the inflation rates might have the potential to influence the interest rate cutoff situation, it is helpful to control and manage the concerns related to the NVIDIA`s quarter result.
In the month of August, Germany`s price rise rate has declined by 2 percent, which is lower than the prediction made by the analysts. While the prices of Spain have also fallen down more than the anticipation has made, the European Union`s harmonised price rise has shown a 2.4 percent growth this August, which is also the lowest rate of this year.
The STOXX 600 of the European Union has a rise of 0.8 percent at points of 524.57, which means it was a little far from its recorded high, while the DAX of Germany has witnessed a significant rise of 0.7 percent, which is recorded as a new high of it.
The data shows that the anticipation was made that the European Central Bank might take a chance to reduce the interest rates once again this September, while the policymakers are still in a dilemma about how long these declines in inflation will continue.
AJ Bell`s investment director, Mr. Russ Mould, has indicated that this data has given a great opportunity to the ECB to adopt a more reliable policy, which is even better than the people have anticipated.
It is seen that the technical sector has risen by 2.2 percent, which is recorded as the top gain in this sector, as the traders have dismissed their concerns over the United States chipmaker company NVIDIA`s quarter predictions, which fell short to match the high expectations of the investors.
If the artificial intelligence is able to provide expected results, then the investors have anticipated potential outcomes on a global equity basis, but it is seen that in a broader concept, the European stocks, which are based on chip manufacture, remain unchanged.
ASM Internationals, STMicroelectronics, and the ASML holdings have shown a rise of around 3 percent to 3.7 percent, and the SAP SE (SAPG.DE) software-based company has witnessed a rise of around 2 percent.
Mr. Mould has stated that the reassuring of the European markets has selected the NVIDIA`s results in stride without being extremely persuaded. It is seen that if dependency on the seven top companies gets lower, this will be termed a real face of development, while here referring to the not-seven means the magnificent seven tech companies where the NVIDIA is also a part of it.
The STOXX 600 of Europe has risen by around 10 percent in the month of August this year after its record six-month lows, while this growth comes after the significant global sell-off, which is fuelled by the increasing anticipations for the looser monetary policy in the regions like the United States and the European Union. But on Friday, it is necessary to take a closer look at the Euro Zone price rise condition and its increasing unemployment rates.
In the STOXX 600, the Delivery Hero (DHER.DE) remained as one of the top performers, which has shown an increase of 12.2 percent, while the German online food delivery-based company has witnessed a robust growth in their merchandise valuation, and they also revealed their coming plans of introducing IPOs (initial public offerings) for their top subsidiary company, which is Emirati, and additionally the Talabat on the Dubai Stock Exchange, but this growth is more than the expectation during the second quarter of the year.
French-based company Spirits has seen an increase after China removed their measures on the imports from Europe in Brandy items. This step has helped the sector to expand; the barrier of uncertainties has been broken, and it also leads to a new start of a healthy relationship between China and the European Union and will also benefit the producers in a positive way.
The Remy Cointreau has witnessed a rise of around 2 percent, and it is seen that the Pernod Ricard has also risen by 2 percent after an anticipated increase in growth factor by the year 2025. The CAC 40 index of France has seen a rise of 0.8 percent, which shows larger market sanguinity. Even other sectors such as utilities, insurance, and real estate, which are primarily based on STOXX 600, have shown a decline that ranges from 0.2 percent to 1.8 percent.
Link: https://www.reuters.com/markets/europe/tech-media-stocks-boost-european-shares-2024-08-29/
