The European Stoxx 600 Index Rises on Industrial Stock Gains in China

Introduction

The European Stoxx 600 index posted its best daily performance in a month on Monday as markets rose collectively, supported by gains in industrial stocks exposed to China due to Beijing’s measures to bail out its fluctuating stock market.

The European Stoxx 600 closed up 0.9% and technology stocks rose 1.7%, following early gains in major Wall Street stocks.

Positive Market Sentiment

A large number of traders are betting on an end to U.S. interest rate hikes in September despite Federal Reserve Chairman Jerome Powell’s call for continued monetary tightening at a Jackson Hole symposium on Friday, according to Reuters.

Industry-Specific Gains

Eurozone banking stocks rose 1.6%, while shares of China-linked auto companies and industrial materials companies rose 0.8% and 1.3%, respectively, after the Chinese Ministry of Finance halved the stamp duty on trade shares to “stimulate the capital market and boost investor confidence.”

LVMH and Kering shares, as well as Hermes shares, rose more than 1% each.

Challenging Market Conditions

By the end of August, the European Stoxx 600 index is set to record its worst monthly performance this year, which is affected by rising bond yields and a worsening economic outlook for the eurozone and China, the largest exporter. market.

Shares in the healthcare sector rose 0.6% on the back of a 1.2% gain in shares of Danish company Novo Nordisk.