The European stock index Stoxx Europe 600 has reached a record high as technology companies rise, writes Bloomberg.
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During trading on the morning of February 22, the Stoxx Europe 600 reached 495.81 points, breaking the January 2022 record. The European market's gains on Thursday were driven by tech companies following Nvidia's “eye-popping” sales forecast, Bloomberg said.
Read: The most important company on the planet: What threatens Nvidia's dominance
Since the beginning of 2024, 65% of the index's growth was provided by shares of four companies, writes Bloomberg: these are the manufacturer of equipment for the microelectronics industry ASML Holding, the drug manufacturer Novo Nordisk, the software developer SAP and LVMH Moët Hennessy (fashion house Louis Vuitton ).
In addition to individual industries, investor sentiment in the European market is supported by signs of stability in the global economy, Bloomberg points out.
Another growth factor is expectations that global central banks will switch to a contraction in 2024 interest rates.
In addition, investor confidence in shares of luxury companies is returning: their broad growth is facilitated by strong sales of LVMH, Bloomberg adds. However, some segments are declining, in particular the basic resources sector (-9.5% YTD) and retail chains (-2.1% YTD).
