European Stocks Gain, Buoyed by Technology, Autos and Luxury | Stock Market News – Mint

(Bloomberg) — European stocks rose the most in over a month boosted by technology, autos and luxury shares as investors weighed Donald Trump’s tariff plans.

The Stoxx 600 Index was up 1% at the close in London, with auto and luxury stocks jumping on the back of the Washington Post’s report that the President-elect’s aids are exploring softer-than-expected tariffs. However, Trump was quick to refute the news on Truth Social. 

“One must remain prudent, Trump could say something different just at any time,” Andrea Tueni, head of sales trading at Saxo Banque France, said after the Washington Post report was published. 

“It’s likely his advisers hold a much more moderate line than him, this can create volatility moments just like this one,” he said. 

Tech shares rose about 3.9%, the most in almost a year, with chip-related names such as Infineon Technologies AG, ASML Holding NV, ASM International NV and BE Semiconductor Industries NV receiving an additional boost from Microsoft Corp.’s plans to spend $80 billion on AI data centers. Elsewhere, luxury behemoth LVMH surged as much as 5.3% during the session.

London’s FTSE 100 index underperformed. Food and beverage firm Unilever Plc fell after being downgraded by RBC Capital Markets, while jet-engine maker Rolls-Royce Holdings Plc lost a Citigroup Inc. buy recommendation that had been in place since 2016.

Related: Europe’s Earnings Growth Obstacles Are Piling Up: Taking Stock

German inflation accelerated more than anticipated in December reaching 2.9% year-on-year, supporting European Central Bank’s gradual approach to cutting interest rates. 

Meanwhile, European earnings expectations remain under pressure, as the region’s sluggish economy prompts some analysts to dial down their forecasts. However, some say the market offers a chance for stock picking.

“European equities’ dispersion is at the highest level since 2009, so there are opportunities, you just have to go and pick them,” Karim Chedid, head of EMEA investment strategy at BlackRock International Ltd, told Bloomberg TV.  

“On a regional level we are seeing an interesting green shoot continuing to come through from some of the economies in Southern Europe, like Italy and Spain while core economies continue to struggle including Germany,” Chedid added. 

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–With assistance from Julien Ponthus.

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