European Markets Rally Amid Steel Surge and Political Optimism
European shares achieved record highs driven by gains in French and Spanish stocks, and a surge in steelmakers following the EU's plan to cut steel import quotas. Despite France's political uncertainties, optimism prevailed with mid-cap growth and potential budget agreements, while technology stocks faced challenges due to new U.S. restrictions on China.
European shares soared to unprecedented highs on Wednesday, bolstered by robust performances in French and Spanish markets, as well as a substantial rally among steelmakers. This surge followed the European Commission's proposal to significantly reduce steel import quotas, propelling shares of major steel companies higher.
The pan-European STOXX 600 index climbed 0.8%, achieving its highest closing level to date. French and Spanish stocks added to the upward momentum, with Germany's DAX marking a near three-month peak. Financial institutions, particularly banks, were instrumental in the STOXX 600's rise, with notable gains from Lloyds, Societe Generale, and Italy's BPER Banca.
Despite political turbulence in France, there was a cautiously positive outlook as caretaker Prime Minister Sebastien Lecornu suggested a budget deal could be reached by the year's end, sparking hope amidst discussions of potential new legislative elections. Meanwhile, technology stocks saw declines due to enhanced U.S. restrictions on chip equipment sales to China.
(With inputs from agencies.)
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