European shares start New Year at 23-month high on energy, bank boost By Reuters

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<span>© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, December 29, 2023. REUTERS/Staff/File Photo</span><br />
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<p>By Ankika Biswas</p>
<p>(Reuters) – Europe’s benchmark stock index hit a near two-year high on Tuesday with energy and banks stocks leading the charge, as investors entered 2024 with undeterred hopes that major central banks might finally deliver interest rate cuts.</p>
<p>The pan-European was up 0.4% by 0920 GMT, hitting a 23-month high, after a long weekend for New Year Day holiday.</p>
<p>Expectations of softer monetary policy drove a 12.7% jump in the benchmark index in 2023, almost fully rebounding from a 12.9% slump in the previous year after major central banks unleashed rapid rate hikes to conquer spiralling inflation.</p>
<p>“All eyes at the start of 2024 are on the near-term inflation prints—which will be instrumental for the European Central Bank’s (ECB) policy decisions in Q1,” said analysts at Pantheon Macroeconomics. </p>
<p>“Specifically, the ECB is fine with the idea of rate cuts in 2024, just not in the first half of the year.”</p>
<p>The ECB broke its longest streak of rate hikes in its 25-year history in October.</p>
<p>Signs of economic woes were underscored by a survey showing euro zone factories ended 2023 on the back foot, with activity contracting in December for the 18th straight month.</p>
<p>Among major economies, German manufacturing activity continued to contract although expectations for future business turned positive for the first time since April. </p>
<p>The German benchmark , however, jumped 1%, outperforming most of its regional peers.</p>
<p>Among major sector gainers, eurozone banks jumped to their highest level since May 2018, led by a 2%-3.7% rise in Italy’s Monte dei Paschi, Spain’s Sabadell and BBVA (BME:). </p>
<p>Energy shares also advanced 1%, tracking higher oil prices.</p>
<p>Shipping companies Maersk, Hapag-Lloyd and Frontline (NYSE:) climbed 2%-4.4% as attacks on vessels in the Red Sea continued, lifting investors’ hopes for higher freight rates.</p>
<p>French automotive supplier <span itemscope="" itemtype="http://schema.org/Corporation"><span itemprop="name"> Valeo </span></span> (EPA:) rose 3.1% following the appointment of new Chief Financial Officer.</p>
<p>Nokia (HE:) lost as much as 1.7%, before turning positive, after the Finnish telecom gear group said it would not meet its financial targets for the year.</p>
<p>Exchange operator Euronext is experiencing a technical issue causing incorrect index calculation on 79 different indices that include components listed in Helsinki and Stockholm.</p>
<p>Financials and food and beverage were the only sectoral laggards, down 0.1% each. </p>
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<br /><a href="https://www.investing.com/news/economy/european-shares-start-new-year-at-23month-high-on-energy-boost-3265259">Source link </a></p><p>The post <a href="https://forextraderhub.com/european-shares-start-new-year-at-23-month-high-on-energy-bank-boost-by-reuters.html">European shares start New Year at 23-month high on energy, bank boost By Reuters</a> first appeared on <a href="https://forextraderhub.com">Forex Trader Hub</a>.</p>