European stocks reached a new high on Wednesday, driven by a surge in technology shares and expectations of an interest rate cut from the European Central Bank. The Stoxx 600 benchmark rose by 0.7%, with the technology subindex jumping by 2.6% following strong performances from tech giants on Wall Street.
Investors are optimistic about the tech sector’s future, with companies like Nvidia Corp. hitting a market capitalization milestone of over $3 trillion. Other tech firms like Micron Technology Inc. and Advanced Micro Devices Inc. also saw gains.
This positive sentiment is also fueled by hopes of central banks easing monetary policies. The ECB is expected to announce a 25 basis-point cut, following the Bank of Canada’s recent rate cut. Traders are also anticipating more easing from the Federal Reserve.
Bond yields in Europe rose slightly ahead of the ECB meeting, as investors await guidance from ECB President Christine Lagarde. Despite stronger economic data, expectations for further ECB cuts remain.
In Asia, stocks saw gains, and in commodities, oil prices rose for the second consecutive session. Currencies and cryptocurrencies remained relatively stable.
Overall, global markets are seeing positive movements, driven by tech stocks and monetary policy expectations.
Vocabulary List:
- Benchmark (noun): A standard or point of reference against which things may be compared or assessed.
- Surge (verb): A sudden powerful forward or upward movement.
- Capitalization (noun): The total value of a company outstanding shares of stock.
- Monetary (adjective): Related to money or currency.
- Central Bank (noun): An institution that manages a country currencymoney supplyand interest rates.
- Anticipating (verb): Regard as probable expect or predict.
