The pan-European STOXX 600 index reached a record high on Thursday, marking its second consecutive quarter of gains. Positive earnings from leading retailer JD Sports drove a surge in the retail sector, contributing to the index's overall strong performance.
Ending the day with a 0.2% increase, the STOXX 600 enjoyed a week that – while range-bound ahead of the extended holiday weekend – ultimately reflected continued optimism throughout the quarter. This quarter's 7% rise was spurred by predictions of impending interest rate cuts and a surge of interest in technology stocks amidst excitement surrounding artificial intelligence.
The strong performance in March concludes a five-month winning streak for the index, rising 3.7% for the month.
Industrial goods and services stocks gained 11% during the quarter, while eurozone banks rose an impressive 17.7%.
Shining brightly, JD Sports soared 15.6%, leading the STOXX 600, following news that pre-tax profit projections for the coming year remain firmly aligned with company guidance. Shares of partner Adidas saw moderate gains as well. The momentum bolstered the retail sector, which recorded a 1.4% overall rise.
Oil and gas stocks also contributed to the positive close, up 0.7%, as higher crude prices signaled expectations of tighter supplies due to OPEC+ alliance production cuts.
Data from Germany indicated an unexpected dip in retail sales for February, while unemployment numbers were less severe than projected. These numbers did little to dampen the broadly positive sentiment, with the DAX 40 index climbing a modest 0.2%.
Noteworthy movers included:
