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European shares reached an all-time high on Friday, with the pan-European STOXX 600 index climbing 0.2% to 525.65 points by 0713 GMT. This gain surpassed the previous record of 525.59 points set in June, and the index is on track for a fourth consecutive week of gains. The benchmark is set to rise 1.3% for the week, marking its longest winning streak in over five months, and is also poised to achieve a second straight month of gains, a pattern not seen in nearly six months.
Real Estate Stocks Lead Gains
Rate-sensitive real estate stocks led the day’s gains, jumping 1.4% as markets anticipate a 25 basis point rate cut at the European Central Bank’s (ECB) upcoming meeting in less than two weeks. This expectation has buoyed investor sentiment across the sector.
France’s CAC 40 index gained 0.3% after consumer price index (CPI) data showed an increase in consumer spending in August. Similarly, Spain’s IBEX 35 rose by 0.6% following a 1% uptick in retail sales for July.
Investors remain cautious ahead of the release of eurozone flash consumer prices and Italian inflation data for August, expected at 0900 GMT. Additionally, comments from ECB board member Kerstin af Jochnick are being closely watched for insights into the central bank’s policy direction.
Sector and Stock Movements
Despite the overall positive performance, technology stocks weighed on the STOXX 600, falling 0.7% after a nearly 1% decline in the previous session. Among individual stocks, Danish medical equipment maker Ambu saw its shares plummet 10.7% after reporting its third-quarter results. In Germany, Thyssenkrupp’s shares dropped 1.6% following the announcement that the chairman and CEO of its steel division would step down.
The market’s performance highlights a mix of optimism, driven by strong sectoral gains, and caution as investors await critical economic data that could influence future monetary policy decisions.
