European Stocks Hit Monthly High on Luxury Boost

On Thursday, European stocks reached their highest point in a month. This was mainly driven by luxury goods groups, which benefited from strong sales by Swiss company Richemont. The Stoxx 600 index, a broad measure of European stocks, climbed 0. 7% to its highest level since mid-December. The French Cac 40 index rose by 2%, while Germany's Dax hit an all-time high, increasing by 0. 3%. Richemont, known for its Cartier brand, saw its shares surge by 17% after reporting quarterly sales that exceeded analysts' expectations. This positive news suggested that the European high-end luxury sector might be recovering from the slowdown caused by the Chinese economy. Other luxury names followed suit, with a group of European luxury companies rising by 7%. LVMH and Hermès saw their shares jump by 8. 9% and 5. 7%, respectively. This surge in luxury stocks indicated that investors believed the sector's downturn was coming to an end. The European stock market's gains followed a positive session on Wall Street, where strong bank earnings and signs of cooling inflation in the U. S. economy boosted investor confidence. The yield on the 10-year U. S. Treasury note, a key global borrowing benchmark, rose slightly to 4. 68% after falling sharply the day before, due to softer inflation data. This shift in bond yields raised hopes that the Federal Reserve might lower interest rates sooner than expected. European chipmakers also benefited from positive news, with the world's largest chipmaker, Taiwan Semiconductor Manufacturing Company, forecasting a near 25% increase in overall revenue for the year, although it did cut its profitability target. The Stoxx Europe 600 Technology index, which includes major European chipmakers, rose by 2%. Dutch semiconductor equipment maker ASML saw its shares increase by 3. 4%. Analysts attributed the market's positive performance to a combination of stable bond yields and strong earnings from European companies, which relieved investors.

European Stocks Hit Monthly High on Luxury Boost

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