Europe’s main stock indexes closed higher on Wednesday, led by technology stocks, as rising expectations of US interest rate cuts boosted global risk appetite, while the financial sector also found support following the UK budget announcement.
The European STOXX 600 index rose 1.06 percent to 574.01 points at the close, continuing its series of gains for the third session in a row.
Technology stocks provided the biggest boost to the benchmark index, rising 2.1%, tracking upbeat global sentiment as investors became more confident about the possibility of a Federal Reserve rate cut in December.
Chip equipment maker ASML jumped 5.7%, BESI rose 4%, and chip maker Infineon advanced 3.7%.
“We continue to see expectations of easing by the Fed driving risk appetite on the margin, and that’s driving that advance, not just in the U.S., but certainly looking at European markets today,” said Laura Cooper, head of macro credit at Nuveen.
Bloomberg News, citing people familiar with the matter, reported that White House Economic Advisor Kevin Hassett, who has called for lowering interest rates, is considered a prominent candidate to head the Federal Reserve.
Meanwhile, in the UK, Finance Minister Rachel Reeves announced a major increase in the Budget tax which will take more money from workers but keep banks exempt from certain new taxes.
The FTSE 100 index rose in London, supported by British banking stocks. Lloyds Banking Group shares rose 3.4%, NatWest rose 2.2%, and HSBC rose 1.3%.
In London, the Financial Times Index advanced 0.85% to 9,691.58 points.
In Frankfurt, the DAX index rose 1.11% to 23,726.22 points.
In Paris, the CAC 40 index rose by 0.88% to 8,096.43 points.
In Milan, the Ftse/Mib index rose 1.01% to 43,130.32 points.
In Madrid, the IBEX 35 index recorded an increase of 1.36%, to 16,361.10 points.
In Lisbon, the PSI20 index rose 0.95% to 8,126.36 points.