European shares jump on China stimulus; luxury stocks shine
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
Sept 24 (Reuters) -European shares opened higher on Tuesday, as China's sweeping stimulus measures boosted stocks of luxury companies and miners.
The pan-European STOXX 600 index .STOXX gained 0.8% to 520.40 points by 0711 GMT, and France's CAC 40 .FCHI rose 1.4%, outperforming its peers.
China's top financial regulators unveiled their biggest stimulus since the pandemic, saying they would cut bank reserves by 50 basis points while reducing mortgage rates.
Luxury companies .STXLUXP, which rely heavily on Chinese consumer spending, were the biggest boost on the index.
LVMH LVMH.PA, Hermes HRMS.PA, Kering PRTP.PA, and Dior DIOR.PA gained between 3.8% and 4%.
Basic resources .SXPP led sectoral gains, jumping 4.4% as copper prices hit a two-month high supported by China's measures and improving demand in the region. MET/L
Britain's FTSE .FTSE gained 0.4%, as stocks of metal miners rose on China's stimulus plans.
The markets will also keep an eye out for comments from the European Central Bank's board member, Elizabeth McCaul, set to speak later in the day.
Data on German business morale is set to be released at 0800 GMT.
Among individual stock moves, UK engineering firm Smiths Group SMIN.L lost 6.7% after its annual profit missed estimates.
Reporting by Pranav Kashyap in Bengaluru; Editing by Abinaya Vijayaraghavan
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
