Stoxx 600 breaks record. Interest rates in France are once again lower than in Spain – Markets in a minute

Stimulus in China and lower-than-expected inflation give the Stoxx 600 a new record

The main European indices ended the last session of the week on a positive note, with the European benchmark, Stoxx 600, reaching historic highs above 528 points. Investors were evaluating September inflation in Spain and France, which slowed more than expected, giving new encouragement to the possibility of interest rate cuts by the European Central Bank at the next meeting.

Inflation in France fell to 1.2% in September, after standing at 1.8% in the previous month, according to preliminary data revealed by Insee, the French statistical institute. In Spain, prices rose 1.5%, eight tenths less than in August and the lowest level since March 2021.

The European reference index rose 0.47% to 528.08 points, a closing high, after reaching a record high of 528.68 points during the session. The chemicals and automobiles sector provided the biggest boost by gaining more than 2%.

The good moment on the stock exchange of European listed companies has been based on greater optimism coming from China, following the measures to stimulate the economy announced by Beijing. Still boosting were inflation data in the United States, which showed a modest decline in August, showing a slowdown in the economy.

Among the main risers were companies in the luxury sector, such as Richemont, Hermes International and Kering, which benefited from expectations that Chinese measures could boost their export volume.

LVMH, in particular, jumped more than 3.5%, after the company revealed that it will invest and take part in the capital of Moncler, which should guarantee it a place on the Italian company’s board of directors. The coat manufacturer’s shares rose 15%.

On the negative side, Novo Nordisk fell 3% after JPMorgan warned that the pharmaceutical company’s third-quarter results could be lower than expected, due to lower sales for the weight loss drug, Wegovy.

Among the main Western European indices, the German Dax jumped 1.22%, the French CAC-40 gained 0.64%, the Italian FTSEMIB gained 0.92%, the British FTSE 100 rose 0.43% and the Spanish IBEX 35 added 0.12%. In Amsterdam, the AEX registered an increase of 0.63%.