European stocks notched their strongest week since May, gaining for a sixth day in a row amid investor optimism over artificial intelligence developments.
The Stoxx Europe 600 Index rose to a new record, advancing 0.5% by the close. Miners and healthcare outperformed, while foods and chemicals were the biggest laggards. The French CAC 40 index was up 0.3%, paring earlier gains as socialists said budget proposals were insufficient, stymying efforts by French Prime Minister Sebastien Lecornu to end a political deadlock.
Among individual stocks, Barry Callebaut AG reversed earlier gains to fall 0.4% after it emerged the Swiss company’s main shareholder previously explored taking the chocolate maker private.
European equities have started the fourth quarter with strong momentum, driven by gains in pharma stocks and bets on Federal Reserve interest-rate cuts. A massive flow of capital into the AI industry is seen boosting profits and extending the rally in tech stocks.
“Gains this year have been driven by multiple expansion,” said Maud Giese, investment specialist for Swiss and global equities at Union Bancaire Privée. “Sentiment could remain constructive in the near term, but if macroeconomic risks materialize, that might lead to a quick reversal.”
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With assistance from Macarena Muñoz.
This article was generated from an automated news agency feed without modifications to text.
