Europe open: Stoxx joins Nikkei and hits record high as global equities surge

22nd Feb 2024 08:21

(Sharecast News) - European shares hit record levels at the open on Thursday, driven by a rally in global equities that saw Japan's blue-chip Nikkei index also reach an all-time high.

The pan-European Stoxx 600 index rose 1% to 495.77, beating the 495.46 points reached in January 2022. Investors are still punting on interest rate cuts this year as inflation starts to ease.

Sentiment was also boosted overnight after better-than-expected guidance by US semiconductor chip giant Nvidia.

Japan's Nikkei beat the previous record set in 1989, closing at 39098.68.

"It seems not even fresh caution from central bankers will curb the enthusiasm on Wall Street which is emanating to other indices," said Hargreaves Lansdown analyst Susannah Streeter.

"With Nvidia again beating forecasts, its stellar results are providing a rising tide, lifting other semi-conductor stocks. UK chip designer Arm surged in after-hours trading, and California based Advanced Micro Devices (AMD) also clawed back lost ground."

"While budget may be being trimmed elsewhere, companies are ringfencing money to beef up their future AI capabilities, with the fear of missing out on this revolutionary technology front and centre."

In equity news, Indivior shares surged after full-year results. The pharma company also announced plans to ditch its London listing in yet another blow to the British capital's reputation as a financial centre.

Nestle fell 3.7% after the food giant reported lower than expected full-year sales as inflationary pressures weighed on consumer demand.

Reporting by Frank Prenesti for Sharecast.com