The pan-European STOXX 600 edged up 0.18%, with the automobiles sector leading sectoral gains with a 1.4% rise
European stocks closed at a record high on Tuesday, with German’s Delivery Hero notching its biggest jump on record on the sale of its Taiwan foodpanda business, while the outlook around interest rates also remained on the cards.
The pan-European STOXX 600 edged up 0.18%, with the automobiles sector leading sectoral gains with a 1.4% rise.
Delivery Hero surged 26.3%, after Uber announced a $1.25 billion deal to take over its foodpanda business in Taiwan and buy new shares in the German company.
Earlier in the session, the main index briefly spiked downwards after a stronger-than-expected U.S. producers inflation report.
After strong gains last week, investors are at bay for two days now as they wait for any hints on when the first rate cut out of the U.S. could come. While the ECB has hinted at staying independent of the U.S. Fed on rate cuts, the outlook remains uncertain beyond June.
Belgian central bank chief Pierre Wunsch told German newspaper Handelsblatt that while ECB’s first two interest rate reductions are a “no brainer”, slower than expected policy easing in the U.S. could delay some of the European regulator’s moves.
The really big difference between the U.S. and Europe has been the relative resilience of the U.S. economy and especially household spending, said Jennifer McKeown, chief global economist at Capital Economics.
She added: This explains why interest rate cuts are likely to start a little later (in the U.S.), most likely in September.
Meanwhile, Swiss eye-care group Alcon gained 7.5% to an all-time high after first-quarter earnings, while hearing aid maker Sonova Holding jumped 6.7% after forecasting accelerating growth for 2024.
Banking stocks gained more than 1%, with Societe Generale adding 3.7% after French President Emmanuel Macron said in a TV interview that the European banking sector needs greater consolidation, even if that means a major French bank being bought by a European rival.
