European stocks see continued surge, mining sector witnesses increases
(MENAFN) European stocks experienced a continued surge on Friday, building on the momentum gained in November. The mining sector witnessed significant increases, and euro zone bond yields further declined amidst growing expectations of imminent interest rate cuts. The European STOXX 600 index marked a 1 percent increase, reaching its highest levels since August, concluding a month of substantial gains with a 6.4 percent rise in November.
Closing higher for the third consecutive week, the STOXX 600 index found support in the real estate sector, known for its sensitivity to interest rate movements. The positive trend was amplified by a sustained decline in euro zone bond yields. This downward trajectory was accentuated by weak manufacturing data from the United States and comments from Jerome Powell, Chairman of the US Federal Reserve. Powell's remarks fueled hopes that interest rate cuts might materialize in the first quarter of the upcoming year.
Goldman Sachs revised its forecast, now anticipating the European Central Bank to implement its first interest rate cut in the second quarter of 2024. This marks a shift from their previous expectation of a rate cut in the third quarter of the next year.
The mining sector emerged as the leader in Friday's gains, experiencing a notable 4.2 percent rise. This surge was attributed to the impact of increasing metal prices, facilitated by the weakening dollar and supportive data from China – a major consumer in the sector.
In a separate development, shares of Signify Lighting rose by 4.9 percent. As the world's largest lighting manufacturer, signify announced a new organizational structure aimed at cost reduction.
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