European Shares Surge Over 1% on Tech Strength Ahead of ECB Rate Decision
European shares opened more than 1% higher on Thursday, driven by strong performances in the technology sector, as investors eagerly awaited the European Central Bank's rate decision later in the day.
The pan-European index was up 1.2% at 514.17 points, marking its best day in nearly a month if gains hold. Technology stocks led the rally, surging 2.6% in line with their Asian counterparts. Basic resources also saw a 2% gain, fueled by rising base metal prices on hopes of a U.S. interest rate cut next week.
All sub-sectors were trading in the green, with markets closely watching the ECB's meeting at 1215 GMT where a 25 basis point interest rate cut is widely expected. ECB President Christine Lagarde's comments at 1245 GMT will be key in confirming potential further rate cuts in October and December.
In economic news, Spain's consumer price figures showed a 2.4% inflation rate in August, boosting the benchmark index by over 1%. Meanwhile, Swedish inflation eased by 0.5% in August, slightly below forecast.
On the corporate front, shares of Roche fell by 4.5% after the company announced that the positive results from an early-stage trial of its weight-loss pill were based on a small sample size of just six patients.
In conclusion, the surge in European shares driven by tech strength and anticipation of the ECB rate decision highlights the market's optimism and potential for further gains. Investors should closely monitor central bank announcements and economic indicators to make informed decisions and capitalize on market opportunities.