Europe’s benchmark stock index hit a near two-year high on Tuesday, as investors entered 2024 with undeterred hopes that major central banks might finally deliver interest rate cuts, with energy stocks leading the charge.
The pan-European STOXX 600 was up 0.3 per cent by 0811 GMT, hitting a 23-month high, after a long weekend for New Year Day holiday.
Expectations of softer monetary policy drove a 12.7 per cent jump in the benchmark index in 2023, almost fully rebounding from a 12.9 per cent slump in the previous year after major central banks delivered rapid rate hikes to conquer spiralling inflation.
Key economic data remain at the top of investors’ radar, including a monthly eurozone PMI reading later in the day and producer prices on Friday. Across the Atlantic, U.S. non-farm payrolls for December will also be crucially parsed for policy cues.
Energy shares jumped 1.4 per cent, tracking higher oil prices.
Chip machine manufacturer ASML lost 1.4 per cent after the Dutch government partially revoked an export licence for the shipment of some chip-making equipment to China.
Denmark’s Maersk jumped 4 per cent to top the STOXX 600. The company still plans to sail more than 30 container vessels through the Suez Canal and the Red Sea.
