European stocks closed sharply higher at fresh record levels on Thursday, as expectations of an improved macroeconomic backdrop provided broad support to the region’s corporate sector. The Euro STOXX 50 advanced 1.2% to 6,355, while the STOXX Europe 600 climbed 1.4% to an all-time high of 648.
Global equities gained after US non-farm payrolls increased by only about half the amount forecast, reducing pressure on the Federal Reserve to tighten policy more aggressively and boosting fixed-income assets in economies closely tied to the US. This came on the heels of softer inflation data in the Eurozone, which had already been supporting government bonds across the bloc.
In banking, UniCredit jumped 4% on the final day of its offer period for German lender Commerzbank, while Deutsche Bank rose more than 5%. At the same time, expectations of lower US interest rates underpinned demand for major Paris-listed luxury groups, with both Hermès and LVMH gaining over 3%. Defense stocks also advanced across Europe, driving Rheinmetall to a 6% higher close.
