FX.co ★ European Stocks Join Global Rally

The Stoxx 50 and Stoxx 600 indices experienced a 0.5% increase on Wednesday, continuing a positive trend for the second day. This improvement was driven by positive global sentiment following US inflation data, which reinforced the likelihood of a Federal Reserve rate cut in September. This optimism contributed to record highs for the S&P 500, Nasdaq Composite, and leading Japanese indices. The technology sector spearheaded regional gains, with SAP rising nearly 2%, along with advances from LVHM, ASML, and Hermes. Conversely, Novo Nordisk, L’Oreal, and Shell underperformed. The energy sector was constrained by declining oil prices ahead of scheduled talks between the US and Russia later this week, limiting broader sector growth.