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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.

Reported by: Business Desk
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European shares rise
European shares rise | Image: Pexels
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European shares gain: European shares soared to yet another record high on Thursday, marking the third consecutive session of gains fuelled by upbeat corporate updates. However, investors exercised caution ahead of crucial economic data releases from the United States, seeking insights into the trajectory of global interest rate cuts.

The 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 the third successive day, on the back of positive corporate reports.

Shares of Encavis surged by 26.8 per cent after Elbe Bidco launched a takeover offer for the German electricity and energy producer, driving the overall utilities index higher. K&S shares climbed by 7.3 per cent following better-than-expected annual results and guidance from the German salt and potash miner.

On the downside, Lanxess shares dropped by 8.2 per cent after the 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.

Investor attention was also directed towards upcoming US economic data, including February producer prices and retail sales figures, which could provide insights into the economic health of the world's largest economy and influence expectations for a mid-year rate cut by the Federal Reserve.

Furthermore, anticipation was high regarding the European Central Bank's potential initiation of a rate cut cycle from June, with key policymakers hinting at the same.

Despite concerns about overbought market conditions, the STOXX 600 index has demonstrated resilience, gaining over 6.1 per cent since the beginning of the year and frequently reaching new highs.

(With Reuters inputs)
 

15:19 IST, March 14th 2024