ROME: European stocks ended at a three-month high Thursday, with a rally in Infineon Technologies AG helping to push the region’s benchmark to a second straight session of gains.
The Stoxx Europe 600 SXXP, +0.93% rose 0.9% to 384.37, its best finish since Aug. 18, according to FactSet data. Thursday’s win builds on Wednesday’s 1.4% rally, which came after a report that the European Central Bank is looking at expanding stimulus measures for the eurozone.
The euro EURUSD, +0.0094% was stuck at around seven-month lows on Thursday, buying $1.0609 compared with $1.0619 late Wednesday. The shared currency dipped below $1.06 on Wednesday after Reuters reported that ECB policy makers were thinking about widening the scope of their bond buying program or implementing a two-tier penalty charge on banks that leave cash with the central bank.
“The escalating expectations that the ECB might ease monetary policy further in December, complemented with the increasing likelihood around the Fed raising U.S. interest rates, has prevented any possibility of a recovery in the [euro] after a month of heavy selling,” Lukman Otunuga, research analyst at FXTM, wrote in a Thursday note. “This has left the EURUSD heavily depressed with little signs shown of a bounce-back.”
ECB policy makers will meet next Thursday.
Aided by losses of the euro, German stocks climbed for a second consecutive session. The DAX 30 DAX, +1.35% jumped 1.4% to 11,320.77, hitting its strongest level since mid-August. The index on Wednesday rallied 2.2%.
In Frankfurt Thursday, shares of Infineon Technologies AG IFX, +12.85% charged up 12.9%, topping both the DAX and the Stoxx 600. The best session since May 2009 came after the German chip maker said quarterly profit almost doubled, helped by earnings at its recent acquisition, International Rectifier.
France’s CAC 40 PX1, +1.08% rose 1.1% to 4,946.02, and the U.K.’s FTSE 100 UKX, +0.88% closed up 0.9% at 6,393.13, led by gains for miners.
Equity trading in the U.S. is closed Thursday for Thanksgiving Day. Read: When do U.S. markets close during Thanksgiving week?
Movers: Shares of Rémy Cointreau SA RCO, -3.00% fell 3%. The French liquor maker said first-half profit rose, helped by weakness in the euro. Stripping out the effects of exchange rates, profit declined by 8%, while sales fell 5.9%
Volkswagen AG VOW3, +2.67% shares rose 3.1%, pushing past news that South Korea has ordered the auto maker to recall more than 125,000 diesel-powered cars after it found the company installed emissions-cheating software in the vehicles. California has stepped up its probe into the software and is looking at a recall of some Audi models.
