LONDON — European stocks climbed higher on Thursday morning, buoyed by positive performances in Asia-Pacific markets overnight.
The pan-European Stoxx 600 index saw an increase of approximately 1% by 10:08 a.m. London time, with nearly all sectors and major stock exchanges recording gains.
Mining stocks were the standout performers, rising over 3.4%. The technology and household goods sectors also saw substantial increases, both up around 3%.
In contrast, oil and gas stocks experienced declines, falling more than 2.6% as crude prices dropped following a Financial Times report indicating that Saudi Arabia is considering abandoning its unofficial oil price target of $100 per barrel. Major energy firms, including BP, Shell, and TotalEnergies, each traded down by more than 3%.
The positive start for European markets followed a robust session in Asia, where markets were led by Japan’s Nikkei 225 and a continued rally in Chinese markets. The Nikkei surged by 2.12%, and the broader Topix index rose by 1.65% after the Bank of Japan released minutes from its July meeting. Meanwhile, mainland China’s CSI 300 extended its winning streak for a seventh consecutive day.
Within Europe, shares of French luxury group Kering saw significant gains, climbing over 6%. The fashion brand’s stock had been under pressure recently amid concerns regarding demand in China, but Thursday’s surge indicates a rebound.
On the downside, shares of H&M dropped by 4% after the clothing retailer reported lower-than-expected operating profit and scrapped its earnings margin target, making it one of the worst performers on the Stoxx 600 during morning trading.
In monetary policy news, the Swiss National Bank (SNB) announced a quarter-point interest rate cut, lowering its key interest rate to 1.0%. This widely anticipated move marks the SNB’s third rate reduction of 2024, aimed at easing borrowing costs.
Across the Atlantic, futures linked to the Dow Jones Industrial Average rose slightly on Thursday following a four-day winning streak for the index. Investors are keenly awaiting the weekly jobless claims report, set to be released on Thursday.
Economists surveyed by Dow Jones predict that 223,000 initial unemployment claims were filed for the week ending September 21. Additionally, the final reading of second-quarter gross domestic product will also be published in the morning.
Several Federal Reserve officials, including Chair Jerome Powell and New York Fed President John Williams, are scheduled to speak on Thursday, adding to the day’s market interest.
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