European stocks saw an uplift on Thursday, buoyed by optimism surrounding potential stimulus measures from the Chinese government aimed at economic growth, and anticipation of further interest rate cuts by the Federal Reserve in the coming months.
China's Politburo has pledged to enhance fiscal support to stabilize the struggling property sector. Investor sentiment received an additional boost after the Organization for Economic Co-operation and Development (OECD) slightly increased its global economic growth forecast for 2024, alongside expectations of more Fed rate cuts next year.
Additionally, the Swiss National Bank reduced its key policy rate by 25 basis points for the third consecutive meeting, signaling that further reductions might be required in the upcoming quarters to maintain price stability over the medium term.
In economic data releases, a survey from GfK and the Nuremberg Institute for Market Decisions indicated that German consumer confidence is expected to see moderate recovery in October despite economic uncertainties. The forward-looking consumer sentiment index improved to -21.2 in October from -21.9 in September, contrary to forecasts of a drop to -22.4.
Conversely, the latest British Retail Consortium (BRC) Consumer Sentiment Monitor reported a decline in UK consumer confidence in September, driven by economic and personal finance concerns.
The pan-European Stoxx 600 index climbed by 1.25%. The UK's FTSE 100 advanced 0.2%, while Germany's DAX and France's CAC 40 surged by 1.69% and 2.33%, respectively. Switzerland's SMI gained 0.5%.
Other European markets, including Austria, Belgium, Finland, Greece, Iceland, Netherlands, Poland, Spain, and Sweden, closed higher. Meanwhile, Denmark, Norway, Portugal, and Turkiye ended on a weaker note, while Russia remained flat.
In the UK market, Anglo American Plc and Prudential both saw gains of approximately 6.1%. Antofagasta, Standard Chartered, Glencore, Diageo, Spirax Group, Rio Tinto, Weir Group, and Entain climbed between 3 to 6%. Fresnillo, Natwest Group, Ashtead, Croda International, B&M European Value Retail, IMI, Convatec, Beazley, Frasers Group, and HSBC Holdings increased by 2 to 2.75%.
Conversely, Shell and BP declined by 4.6% and 4.1%, respectively. British American Tobacco, BAE Systems, Tesco, Endeavour Mining, Barratt Developments, RightMove, Relx, and Imperial Brands lost between 1 to 3%.
In Germany, Sartorius rallied more than 8%. Commerzbank, which is a potential acquisition target for Italian lender UniCredit SpA, gained nearly 7%, reaffirming its strategy for higher net profit and return on equity by 2027. Siemens, Adidas, Porsche, Continental, Infineon, BMW, Mercedes-Benz, Brenntag, and Merck rose between 3 to 4.5%. Evotec increased by 3.5% following a technology development partnership with Novo Nordisk.
Daimler Truck Holding, RWE, Deutsche Post, Zalando, HeidelbergCement, Beiersdorf, Volkswagen, Deutsche Bank, and Vonovia also ended significantly higher. Puma gained about 2% after announcing Markus Neubrand as its new Chief Financial Officer and Board member. Rheinmetall, Symrise, Siemens Energy, Henkel, Deutsche Boerse, and Covestro declined by 0.6 to 1.6%.
In France, LVMH, Kering, and Hermes International soared between 9 to 10%. L'Oreal gained nearly 7%, while Pernod Ricard, ArcelorMittal, Eurofins Scientific, Capgemini, STMicroElectronics, Societe Generale, Dassault Systemes, Unibail Rodamco, Renault, and Saint Gobain increased by 2 to 6%. Teleperformance dropped 4.7%, with Thales, TotalEnergies, Orange, and Engie declining between 1.3 to 2.5%.
