European stocks track Wall Street gains, rise to two-year high

On Tuesday, European stocks opened slightly higher, reaching their highest levels in two years, buoyed by gains on Wall Street the previous night. The European STOXX 600 index rose by 0.2 percent at 0825 GMT, marking its fifth consecutive session of gains.

The positive sentiment in European markets was influenced by Wall Street’s record levels on Monday. Investors are closely monitoring key developments this week, including corporate results from Big Tech companies and the Federal Reserve’s decision on interest rates, which are expected to have a significant impact on market dynamics.

While there is a general consensus that interest rate cuts in Europe are imminent, policymakers remain divided on the timing of such measures. Traders are anticipating a roughly 75 percent chance that the European Central Bank will implement an interest rate cut of at least 25 basis points in April.

The industrial sector received a boost, with the shares of Swedish construction company Skanska rising by 4.9 percent after Jefferies upgraded its recommendation for the company’s shares to “buy.” However, Diageo shares experienced a 3.2 percent decline after the world’s largest alcoholic beverage maker missed sales estimates for the first half of the year.

The French CAC 40 index increased by 0.1 percent, supported by a 1.8 percent rise in Renault shares after the automaker decided to shelve plans for its electric car unit, citing unfavorable stock market conditions.