Home Business News European markets rally driven by Euro zone data and earnings

European markets rally driven by Euro zone data and earnings

22nd Feb 24 2:24 pm

European equities surged on Thursday, with the STOXX 50 hitting a fresh 23-year peak and the broader STOXX 600 reaching a new high.

Investors reacted positively to a batch of corporate updates and upbeat economic data. The latest Flash Eurozone Services PMI release sparked market optimism, showing a significant improvement, and reaching its highest level in seven months.

The Eurozone Composite PMI for February also rose to 48.9 from 47.9, indicating stabilizing output in the services sector, improved employment and growing business confidence. However, inflationary pressure persisted but was in line with expectations.

The DAX rose strongly, propelled by a strong performance in Germany’s automobile sector. Mercedes-Benz Group’s shares surged after the company announced a dividend raise and an expansion of its buyback program, despite warning of lower earnings for the current year.

However, MTU Aero Engines and Fresenius were the main laggards. MTU Aero Engines cited concerns related to Pratt & Whitney engines and investments in infrastructure and technology as factors weighing on its cash flow outlook through 2026.

Meanwhile, the CAC 40 also experienced gains, inching closer to the key level of 8,000 points as luxury and financial stocks drove growth.

In the UK, the FTSE 100 attempted to rebound after two consecutive down sessions led by the strong performances of Lloyds, Rolls-Royce, and Anglo-American after the publication of their earnings.

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