The European Stoxx 600 index recorded its best daily performance in a month today, Monday, amid a collective rise in the markets, supported by the rise of shares of industrial sectors exposed to China due to Beijing’s measures aimed at helping its faltering stock market.
The European Stoxx 600 index closed up 0.9%, and technology shares led the gains, up 1.7%, tracking early gains for major stocks on Wall Street.
A large number of traders are betting on stopping raising US interest rates in September, despite Federal Reserve Chairman Jerome Powell’s assertion of the need to continue tightening monetary policy at the Jackson Hole symposium on Friday, according to Reuters.
Shares in the eurozone banking sector rose 1.6%, and China-related auto and industrial materials companies rose 0.8% and 1.3%, respectively, after China’s Ministry of Finance halved the stamp duty on stock trading to “stimulate the capital market and boost investor confidence.”
LVMH and Kering luxury goods and Hermes shares rose more than 1% each.
As August approaches its end, the European Stoxx 600 index is heading to record its worst monthly performance this year, affected by the rise in bond yields and the deterioration of the economic outlook for the euro area and China, the largest export market.
Shares of the health care sector rose 0.6%, supported by the rise of the Danish company Novo Nordisk by 1.2%.