Published 15:19 IST, March 14th 2024
European shares hit new highs, await US economic data
The pan-European STOXX 600 index rose by 0.3 per cent, set for its eighth consecutive week of gains.
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European shares gain: European shares soared to yet ar record high on Thursday, marking third consecutive session of gains fuelled by upbeat corporate updates. However, investors exercised caution ahead of crucial ecomic data releases from United States, seeking insights into trajectory of global interest rate cuts.
pan-European STOXX 600 index rose by 0.3 per cent, set for its eighth consecutive week of gains. Germany's DAX index also surged by 0.2 per cent, hitting all-time high levels for third successive day, on back of positive corporate reports.
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Shares of Encavis surged by 26.8 per cent after Elbe Bidco launched a takeover offer for German electricity and energy producer, driving overall utilities index higher. K&S shares climbed by 7.3 per cent following better-than-expected annual results and guidance from German salt and potash miner.
On downside, Lanxess shares dropped by 8.2 per cent after specialty chemicals maker provided a weak outlook for 2024. Similarly, Hapag-Lloyd reported an 83 per cent decline in net profit for 2023 and slashed its dividend by 85 per cent amid challenging market conditions, leading to a 2.5 per cent decrease in its stock price.
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Investor attention was also directed towards upcoming US ecomic data, including February producer prices and retail sales figures, which could provide insights into ecomic health of world's largest ecomy and influence expectations for a mid-year rate cut by Federal Reserve.
Furrmore, anticipation was high regarding European Central Bank's potential initiation of a rate cut cycle from June, with key policymakers hinting at same.
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Despite concerns about overbought market conditions, STOXX 600 index has demonstrated resilience, gaining over 6.1 per cent since beginning of year and frequently reaching new highs.
(With Reuters inputs)
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15:19 IST, March 14th 2024