Europe close: Stoxx 600 notches another record as markets edge higher

28th Mar 2024 15:49

(Sharecast News) - European stocks reached another record high on Thursday, though gains were only small as investors refrained from taking on too much risk ahead of the long Easter weekend.

The Stoxx 600 index finished up 0.18% at another fresh peak of 512.67 - its fourth straight record close - but markets across the continent were rangebound for last trading session of the quarter, with benchmarks closed for Good Friday and Easter Monday. The Stoxx 600 finished the quarter with a gain of 7.1%

Investors had to contend with a barrage of economic data on Thursday, both from the continent and in the US, as markets continue to grapple with how incoming indicators affect the short-term outlook for monetary policy as central banks edge closer to cutting interest rates.

In the UK, official figures showed that GDP contracted by 0.3% in the last three months of the year, unrevised from an earlier estimate. This followed a 0.1% contraction in the period from July to September.

In Germany, data showed unemployment rose less than expected in February, rising just 4,000 and keeping the jobless rate steady at 5.9%. However, German retail sales were shown to have dropped by 2.7% last month, well below the 0.8% decline predicted.

Over in the US, markets were similarly subdued despite economic data coming in ahead of forecasts. Jobless claims, consumer confidence, pending home sales and GDP figures all surprised to the upside, with the latter showing that economic growth in the fourth quarter was unexpectedly revised higher.

According to Lane Clark, co-founder of investment platform TPP, markets were "holding their breath" ahead of Friday's release of the US PCE inflation data - the Federal Reserve's preferred measure of inflation. "Traders are wise to adopt a cautious stance this week," Clark said.

Market movers

FTSE 250-listed Spirent Communications finished 12% higher after Keysight Technologies reached a deal to buy the company for £1.16bn, outbidding US peer Viavi Solutions, which had already agreed to buy the telecoms group earlier this month. Spirent said it is now recommending a 201.5p-per-share offer from Keysight, which represents a 26.5p or 15% premium to Viavi's offer.

JD Sports Fashion was also a major gainer in London, surging 16% after saying that, despite "challenging" conditions, sales should pick up on the back of the Paris Olympics and European football finals in the summer.

In Stockholm, Embracer Group soared 25% as the Swedish games maker said it was selling its Gearbox Entertainment studio to Take-Two Interactive for $460m.

Leading the fallers on the Stoxx 600 was Soitec, the French chip materials manufacturer, which dropped 21% after guiding to flat revenues in 2025.