Global stock markets rallied on Thursday following the European Central Bank’s (ECB) decision to cut interest rates and strong earnings reports from key technology companies.
European markets, including London, saw gains after the ECB lowered its main interest rate by a quarter percentage point, signaling confidence in controlling inflation.
Jochen Stanzl, chief analyst at CMC Markets, noted, “The ECB’s decision is good news for investors, fostering a more favorable environment for market growth.”
On Wall Street, major indexes also rose, with the tech-heavy Nasdaq leading the surge.
Taiwan Semiconductor Manufacturing Company (TSMC), the world’s largest chipmaker, posted better-than-expected third-quarter profits, easing concerns about a slowdown in the tech sector.
Earlier in the week, Dutch semiconductor equipment maker ASML issued disappointing forecasts, sparking fears of a tech downturn, however, TSMC’s strong earnings helped reverse the negative sentiment.
Notably, shares of tech giants Nvidia and AMD rose by more than 3% and nearly 2%, respectively, in early U.S. trading.
The ECB’s rate cut, widely anticipated, reflected growing signs that inflation is easing, while economic activity remains sluggish.
Paris, Frankfurt, Milan, and Amsterdam stock markets saw more than 1% gains. However, the euro weakened against the dollar, and gold hit a new record high.
In corporate news, Finnish telecoms firm Nokia’s shares fell over 4% after reporting an 8% drop in sales. In comparison, Nestlé’s stock jumped more than 3% following an announcement from its new CEO, Laurent Freixe, about a leadership overhaul addressing sluggish sales.
Meanwhile, Asian markets, including Hong Kong and Shanghai, closed lower as property stocks fell after new measures from China’s housing ministry failed to boost confidence in the country’s struggling real estate sector.
