The pan-European Stoxx 600 index rose 0.45% on Thursday, buoyed by strong performances in banking stocks, which climbed 0.98%. Household goods stocks, however, lagged behind, slipping 0.67%.
CAC 40 Rebounds Amid Political Uncertainty
France’s CAC 40 index gained 0.51%, rebounding from Wednesday’s decline despite growing political turmoil in the country. France’s risk premium reached parity with Greece’s for the first time, reflecting heightened market concerns.
Direct Line Soars on Takeover Offer
Shares of British insurance firm Direct Line surged 42%—their highest level since early 2023—following news of a takeover offer from rival Aviva. Direct Line rejected the bid, calling it “substantially undervalued.” The stock closed the day up 41%.
Chip Stocks and French Spirits Drive Gains
Dutch semiconductor firms ASML, Besi, and ASM International all traded higher after reports suggested potential U.S. restrictions on semiconductor equipment and AI memory chip exports to China may be less severe than anticipated.
Meanwhile, Remy Cointreau shares climbed 5% after posting a smaller-than-expected drop in first-half operating profit. Despite forecasting a full-year sales decline of 15% to 18%, analysts at Citi labeled the outlook as “significantly worse than expected.” The spirits maker closed the day up 2.96%.
Inflation Data in Focus
Investors kept an eye on eurozone inflation data ahead of Friday’s bloc-wide release:
- Germany: Consumer prices held steady in November, defying expectations of a slight increase.
- Spain: Inflation rose from 1.8% to 2.4%, fueling speculation about monetary policy direction.
Global Market Activity
In the U.S., markets were closed for Thanksgiving, while Asia-Pacific stocks traded mixed. Investors in the region weighed the implications of a surprise interest rate cut by South Korea.
What’s Next for European Markets?
The Stoxx 600’s resilience amid varied performances across sectors indicates cautious optimism. Investors will likely focus on Friday’s eurozone inflation data and global macroeconomic trends as they gauge the direction of monetary policy and economic growth.
