European stocks ended the day on a flat note after initially surging on the back of fresh Chinese stimulus measures aimed at bolstering the country’s struggling property sector. The pan-European STOXX 600 index closed at 457.96 points, paring gains it had made earlier in the session when it rose as much as 0.9%.
China’s financial regulators took steps to support the property sector, including reducing down-payment requirements for first and second-time home buyers and cutting rates on existing mortgages. Additionally, China’s embattled developer, Country Garden, received approval from its creditors to extend the deadline for a key bond repayment.
Despite the initial optimism, Britain’s FTSE 100 fell 0.2%, Germany’s DAX edged down 0.1%, and France’s CAC 40 slipped 0.2%. The technology index in Europe gained 0.5%, with Dutch semiconductor equipment maker ASML seeing its shares rise by 0.8%. Miners added 0.6% after experiencing nearly a 2% increase due to a rally in iron ore futures, and automakers gained 0.3%.
Danish drugmaker Novo Nordisk saw its shares rise by 0.7% following the launch of its weight-loss injection, Wegovy, in Britain.
Investors are eagerly awaiting data on German inflation and euro zone gross domestic product (GDP) later in the week ahead of the European Central Bank’s policy meeting scheduled for September 14.
In the absence of US markets due to the Labor Day holiday, Asian markets were lifted by the news of Chinese stimulus. Hong Kong’s Hang Seng index climbed 2.5%, while China’s Shanghai Composite added 1.4%. South Korean shares reached a three-week high, led by gains in battery makers, with the Kospi closing up 0.81%. Japan’s Nikkei 225 edged up 0.7%, and Australian shares gained as the central bank’s decision on interest rates approached.
Gold prices remained steady, with spot gold trading at $1,939.61 per ounce. Meanwhile, crude oil prices rose to near seven-month highs amid hopes that Saudi Arabia and Russia would extend their production caps. Brent crude, the primary international contract, briefly touched $89 per barrel.
