European Markets Surge as Tech Stocks Rally Post Fed Rate Cut
European markets experienced a rise, led by technology stocks, following the U.S. Federal Reserve's interest rate cut. The STOXX 600 index gained 0.67%, while SIG's shares fell significantly. The Fed's cautious outlook on further rate cuts impacted market expectations. Investors focus on fiscal policies to bolster economic growth.
On Thursday, European markets witnessed a surge, spearheaded by a rally in technology stocks after the U.S. Federal Reserve implemented its first interest rate cut since December. The pan-European STOXX 600 index increased by 0.67%, reaching 554.32 points.
Tech stocks made significant strides with a 2.1% increase, marking a recovery from a previous decline over July and August. The upward movement was echoed in parts of Asia following the Fed's quarter-point rate reduction late Wednesday. However, the Fed's reserved stance on further rate reductions tempered market expectations for aggressive economic stimulus.
Meanwhile, European investors are keeping a close eye on domestic fiscal strategies, particularly in light of government debts. Notably, Swiss packaging giant SIG saw its shares drop by 20% after issuing a profit warning, while Continental declined due to its spinoff of Aumovio. Novo Nordisk, on the other hand, posted gains following promising trial data for its new weight-loss drug.
(With inputs from agencies.)
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