LONDON — European stocks moved higher on Thursday, building on positive momentum in the previous session.
The pan-European Stoxx 600 provisionally ended the day around 0.6% higher after hitting an all-time high during the session.
Germany’s DAX provisionally closed 1.35% higher, leading gains among major regional bourses, while London’s FTSE 100 was up 0.14% after touching a record high during Wednesday’s session.
Technology stocks led gains in Europe on Thursday, following reports that OpenAI had sold shares worth a total $6.6 billion, valuing the company at $500 billion.
By the end of the trading session, the Stoxx Europe Technology index had jumped 2.4%. Semiconductor stocks led gains in the sector, with Be Semiconductor adding 4.5%. ASMI gained 6.6%, while ASML was up by 4.3%.
Elsewhere, auto stocks also posted notable gains, with the Stoxx Automobiles and Parts index gaining 2.3%.
Shares of Stellantis popped 8.3%, taking the stock toward the top of the Stoxx 600. The company reported a 6% year-on-year increase in third-quarter U.S. sales, with its Jeep, Chrysler, Ram and Fiat brands all seeing growth.
Rico Luman, a senior sector economist with a focus on transport and logistics at ING, told CNBC that Stellantis sales were poised to slow down in the fourth quarter, but said there would not be a contraction in the full-year figures.
“Q3 was strong because of last minute EV sales to anticipate the termination of the tax credit scheme per 10/01,” he said in an email. “Another factor in play is that [manufacturers] have barely passed on the tariff-burden.”
Stellantis share price
Volvo shares rose around 1.6% after the company reported a 1% annual rise in global car sales in September.
In other corporate news, British grocery giant Tesco reported better-than-expected first-half earnings on Thursday. The company raised its guidance for the full year, saying it now expects adjusted operating profit to fall in the range of £2.9 billion and £3.1 billion ($3.9 billion and $4.2 billion). It had previously forecast annual adjusted operating profit of £2.7 billion to £3 billion.
Shares of Tesco were 5.3% higher in afternoon trade.
Elsewhere, Deutsche Bank lowered its price target for Danish jewelry giant Pandora on Thursday.
“We update our forecasts, opting to put the sharp rise in the cost of silver to … through our estimates,” said Deutsche Bank’s Alison Lygo, although she noted that with a strong marketing campaign, Pandora could implement stainless steel into its product mix to offset the headwind.
Pandora’s shares ended around 1.3% lower, wiping out earlier gains.
Markets were also focused on the U.S. government shut down which entered its second day after Republicans and Democrats failed to agree on a short-term deal on government funding earlier this week.
The shutdown means September jobs data will not be released on Friday, as scheduled, clouding the outlook for the Federal Reserve just weeks ahead of its next meeting.
Still, the central bank is expected to announce an interest rate cut at its Oct. 28-29 meeting after Wednesday morning’s ADP data reflected a drop in private payrolls last month, and as further ramifications of the ongoing shutdown remain to be seen.
U.S. stocks pulled back on Thursday with the S&P 500 retreating from a record as investors tried to shrug off concerns tied to the government shutdown.
Overnight in Asia-Pacific markets, South Korea’s Kospi index jumped more than 3% Thursday to hit an all-time high, lifted by gains in heavyweight Samsung Electronics and SK Hynix.
