Delivery Hero reports strong increase after stronger than expected GMV growth
French spirits makers gain after China lifts provisional measures on brandy
STOXX 600 rises by 0.8 percent
Aug 29 (Reuters) – Europe’s STOXX 600 rose on Thursday and Germany’s DAX closed at a record high, led by technology stocks, after weaker inflation data raised hopes of interest rate cuts and offset some disappointment over Nvidia’s quarterly results.
German inflation fell to 2% in August, data showed, below the 2.3% forecast by analysts. Prices in Spain also fell more than expected. EU-harmonized inflation was 2.4% in August, the lowest increase in a year.
The pan-European STOXX 600 Index (.STOXX)opens new tab rose 0.8% to 524.57 points, just missing a new record closing value, while the German DAX (.GDAXI)opens new tab rose 0.7 percent to a record high.
The data fueled hopes that the European Central Bank would cut interest rates again in September as policymakers stressed that inflation must continue to fall.
“(The data) gives the ECB a greater chance to be a little more relaxed on policy than people might have expected,” said Russ Mould, investment director at AJ Bell.
The technology sector (.SX8P)opens new tab rose 2.2%, making it the biggest sector gainer as traders ignored U.S. chipmaker Nvidia (NVDA.O).opens new tab Quarterly forecast that did not meet the high expectations of some investors.
Investors had braced themselves for potential shocks to global stock markets if the darling of the AI industry delivered less than impressive results, but European chip stocks were largely unfazed.
ASM International (ASMI.AS)opens new tabSTMicroelectronics and ASML Holding (ASML.AS)opens new tab rose between 3% and 3.7%. The software group SAP SE (SAPG.DE)opens new tab rose by almost 2%.
“It’s nice that the European markets have taken Nvidia’s results in their stride and not been influenced by them in any way. If we’re not dependent on seven companies globally, that’s probably a healthy thing,” said Mould, referring to the influential stocks of the so-called “Magnificent Seven,” which includes Nvidia.
The STOXX 600 has gained almost 10 percent since hitting a six-month low in August, the result of a sharp global sell-off as expectations of looser monetary policy in the US and Europe rose.
Eurozone inflation and unemployment data will be closely watched on Friday.
Delivery Hero (DHER.DE)opens new tab rose 12.2%, making it the biggest gainer on the STOXX 600, after the German online takeaway food supplier reported stronger-than-expected growth in its gross merchandise value in the second quarter and said it was preparing an IPO of its Emirati subsidiary Talabat on the Dubai Stock Exchange.
Shares in French spirits makers rose after China lifted provisional measures on brandy imports from the European Union.
Remy Cointreau (RCOP.PA)opens new tab rose 2%, while Pernod Ricard (PERP.PA)opens new tab The French CAC 40 (.FCHI) also rose 2% after forecasting sales growth for 2025.opens new tab was an increase of 0.8%.
All STOXX 600 sectors were in the green, except for utilities (.SX6P).opens new tabInsurance (.SXIP)opens new tab and real estate (.SX86P)opens new tab which fluctuated between 0.2% and 1.8%.
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Reporting by Pranav Kashyap and Lisa Mattackal in Bengaluru; Editing by Sonia Cheema and Rod Nickel
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