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07/08/24
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STOXX 600 Gains 1% In Recovery Led by Banks
On Wednesday, a strong comeback by banks helped the main stock index in Europe to record the biggest one-day rise since Nov., although Novo Nordisk, the continent’s biggest company by market cap, slid after reducing its profit outlook for the full year.
The STOXX 600 pan-European index closed up 1.5% but was still lower than the key 500-point level after the recent selloff fueled by U.S. recession fears.
Main indexes in France, Germany, Spain, and London also rose between 1.5% and 2%. The “fear gauge” volatility index dropped for the 2nd day from the highest level since Mar. 2022, hit at the beginning of the week, signaling a continued improvement of investor sentiment.
The banking index led sectoral gains and jumped 2.7% to record its best single-day gain in over a year, after losing 11% over the last five days, as ABN Amro jumped 5.6% after increasing its net interest income forecast for the full year.
Olli Rehn, a policymaker at the European Central Bank, said rate cuts may continue if confidence strengthens in slowing inflation in the near future.
Data showed a stronger-than-expected increase in industrial production in Germany in June, a day after strong industrial orders gave some hope for the biggest economy in Europe as it battles with a likely recession.
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