Europe's STOXX 600 clocks best week in over a month as rally broadens
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The pan-European STOXX 600 hit another high of 652.35 and closed 0.7% higher on Friday, registering its sharpest weekly jump since mid-May. Germany's DAX index also notched an all-time high and closed up 0.8%. German industrial group Siemens jumped 2.6% and was the biggest boost to the DAX after brokerage Kepler Cheuvreux upgraded the stock to "hold" from "reduce". Chip firm Aixtron rose 6%, while peers Soitec and BE Semiconductor added 5% and 4.2% respectively. "The tech-lite European indices are back in demand, even more so given that the stocks within them trade on much lower (valuation) than those seen over in the U.S.," said David Morrison, senior market analyst at Trade Nation. "So, not only are Europe's indices less exposed to the AI trade, but they are also relatively cheap." Reuters reported the German draft budget for 2027 foresees borrowing of more than €203 billion($232 billion), up from total borrowing of €196.5 billion n the key targets approved by the government in April. Meanwhile, defence stocks were 0.7% higher as Russia bombarded Ukraine with its deadliest strike this year. Investors anticipate more defence spending and output in times of geopolitical tensions. Defence stocks have seen the strongest gains this week, along with cyclicals such as industrials, banks and financial services as the rally, previously concentrated in tech stocks, broadened, aided by easing Middle East tensions. A lukewarmU.S. jobs reporton Thursday boosted expectations that the Federal Reserve may wait until later in the year before raising rates, while global business activity reports broadly suggested a resilient economy. Earlier this week, euro zone data indicated that inflation rose at a slower-than-expected pace in June and European Central Bank President Christine Lagarde said that risks to inflation and economic growth were now more balanced than a few weeks earlier. "Compared with June, policymakers sounded noticeably less hawkish... The message was not that the inflation battle has been won, but rather that central banks are becoming increasingly comfortable with the direction of travel," said Modupe Adegbembo, an economist at Jefferies. Traders now see the ECB hiking rates by a total of 23 basis points this year, LSEG data showed. French voucher and benefits company Pluxee gained 7.8% after posting a smaller-than-expected drop in organic sales in the third quarter. Trading volumes are expected to be thin on account of a U.S. public holiday. (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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