STOXX 600 Hits Record 649.86 as Rate-Hike Bets Recede and Rally Broadens
Updated
Updated · KFGO · Jul 3
STOXX 600 Hits Record 649.86 as Rate-Hike Bets Recede and Rally Broadens
3 articles · Updated · KFGO · Jul 3
Summary
Europe’s STOXX 600 briefly touched a record high and was up 0.2% at 649.86 by 0806 GMT, putting it on track for its biggest weekly gain since mid-May.
A lukewarm U.S. jobs report pushed back expectations for a near-term Federal Reserve hike, while softer-than-expected June euro zone inflation eased pressure for aggressive ECB tightening.
Cyclicals led the advance as the rally spread beyond tech into industrials, banks and financial services; Germany’s DAX also hit an all-time high, helped by a 1.7% rise in Siemens.
Traders now price in just 23 basis points of ECB hikes this year, while easing Middle East tensions and expectations of higher defence spending added support to European shares.