European Stocks Rise on Tech and Real Estate Gains, Swiss Market Boosted by Rate Cut

European shares experienced a positive trading session on Thursday, propelled by a surge in technology and real estate stocks. The pan-European STOXX 600 index rose 0.4% by mid-morning, with ASMI, a semiconductor equipment manufacturer, leading the charge in the tech sector after receiving an upgrade from Morgan Stanley.

Switzerland’s benchmark index also saw a 0.4% increase following the Swiss National Bank’s decision to cut interest rates by 25 basis points to 1.25%, solidifying its position as a leader in the global policy easing cycle.

In contrast, the Norwegian central bank maintained its key policy interest rate at a 16-year high of 4.50%, indicating an expected rate cut in 2025. Norwegian stocks remained flat in response.

Investors are now eagerly awaiting the Bank of England’s policy decision later in the day, with the UK’s FTSE 100 index showing a 0.2% gain.

Economic data from Germany revealed a slightly larger-than-expected decline in producer prices in May, while a preliminary reading of eurozone consumer confidence for June is anticipated later in the day.

Corporate news also contributed to market movements, with German biotech firm Evotec surging 12.3% following reports of discussions with defense advisers amidst a recent share price decline. Portuguese bank Millennium BPC saw a 6% increase after receiving a “buy” rating from Jefferies.

Danone’s shares fell 3.8% as the company announced a renewed focus on health and medical nutrition, with traders noting a lack of guidance upgrades in its medium-term targets.

Tate & Lyle’s shares declined 2.7% following the announcement of a $1.8 billion acquisition of U.S.-based CP Kelco. Lufthansa and Ryanair also experienced losses after receiving downgrades from Stifel and UBS, respectively.

Overall, the European stock markets presented a mixed picture, with gains in technology and real estate offset by losses in specific sectors and individual stocks. As investors await further policy decisions and economic data, the market remains dynamic and sensitive to corporate developments.