European stocks experienced a positive trading session on Thursday, culminating in a robust close with most sectors witnessing gains. Investors focused on the latest developments in European trade and monetary policy. The STOXX 50 saw a significant increase, closing up by 1.1%, while the broader pan-European STOXX 600 recorded a more modest rise of 0.4%, tempered by notable declines in the pharmaceutical sector.
The recently struck trade agreement between the United States and the United Kingdom upheld the existing 10% tariffs on UK goods. Concurrently, the European Union issued a warning of potential tariffs on a variety of US goods should their ongoing negotiations falter.
In the realm of monetary policy, both the Riksbank and the Norges Bank maintained their current interest rates, whereas the Bank of England proceeded with a rate cut. The technology and financial sectors spearheaded gains within the STOXX 50, with notable performances from ASML, UniCredit, Santander, and Intesa Sanpaolo, each rising by more than 3%. Additionally, AB InBev saw a 3.2% surge following the release of robust financial results.
Conversely, Mercedes Benz experienced a 6% decline, prompted by economic uncertainties that led to a reduction in its dividend payout. Moreover, Novo Nordisk fell by 4% after revising its guidance downward for one of its obesity medications.
