Stoxx 600 Closes Second: straight quarter with gains (updated)
28/03/2024 10:00
(There will be no European markets report on Friday and Monday
on account of Good Friday and Easter. Reuters will resume
coverage on Tuesday, April 2.)
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Millicom gains after JP Morgan upgrade
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Casino slumps after financial restructuring
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German retail sales fall unexpectedly in Feb
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STOXX 600 up 0.2%
(Updated at 1650 GMT)
By Shristi Achar A and Johann M Cherian
March 28 (Reuters) - Europe's STOXX 600 closed at a
record high on Thursday, finishing its second-straight quarter
in gains, with retailer JD Sports notching its strongest day in
over four years after reiterating its annual profit forecast.
The pan-European STOXX 600 .STOXX ended 0.2% up, closing a
week that was marked by four range-bound sessions ahead of a
holiday extended weekend.
The benchmark index finished its second straight quarter of
gains with a 7% rise, fuelled by optimism around imminent
interest rate cuts and a rally in technology stocks on the back
of artificial intelligence fervour.
The index also closed its fifth-straight month higher,
ending March with a 3.7% advance.
"In the first part of the year, investors were
concentrating on few stocks, but now that is broadening," said
Nadege Duffose, global head of multi-asset at Candriam.
Duffose added that more cyclical sectors such as
industrials and banking were much stronger than expected as
investors were less worried about a recession and are confident
that central banks will pivot this year.
The industrial goods and services sector .SXNP gained 11%
in the first three months of the year, while eurozone banks
.SX7E rose 17.7%.
Market focus now squarely remains on the U.S. personal
consumption expenditure data, due on Friday when markets are
closed, to ascertain the Federal Reserve's timing of rate cuts,
potentially setting the tone for other central banks.
JD Sports JD.L , which sells Adidas ADSGn.DE and other
sports brands, surged 15.6% to the top of STOXX 600 as the
sportswear retailer said its pre-tax profit for the year ahead
was in line with its guidance. Shares of Adidas added 1.1%.
The broader retail sector .SXRP led sectoral gains with a
1.4% rise.
Oil and gas shares .SXEP also aided gains, up 0.7%
tracking higher crude prices as investors anticipated tighter
supplies given the OPEC+ producer alliance is widely expected to
stay the course on its current production cuts. O/R
On the day's data front, German retail sales fell
unexpectedly in February, while the number of unemployed people
in the country rose less than expected in March. The DAX 40
index .GDAXI climbed 0.2%.
Among other stocks,
Millicom
TIGOsdb.ST rose 3.5% after JP Morgan upgraded the Swedish
telecom group to "overweight" from "neutral".
Casino CASP.PA slumped 63.4% after the French food
retailer completed its financial restructuring and said a new
leadership team formed around Czech billionaire Daniel Kretinsky
was taking control.
Soitec SOIT.PA dropped 20.6% to the bottom of the
benchmark index after the French semiconductor materials
supplier said it expects flat revenue in 2025 and flagged high
inventory levels for its RF-SOI technology.
(Reporting by Shristi Achar A and Johann M Cherian in
Bengaluru; Editing by Mrigank Dhaniwala, Sohini Goswami and Nick
Zieminski)
((Shristi.AcharA@thomsonreuters.com
https://twitter.com/ShristiAchar;))