European markets advanced on Thursday, extending momentum from the previous session as technology and auto shares fueled strong gains.
The pan-European Stoxx 600 finished the day 0.6% higher after reaching a record intraday peak. Germany’s DAX led the rally, closing up 1.35%, while London’s FTSE 100 rose 0.14% after hitting an all-time high on Wednesday. France’s CAC 40 ended flat, while Spain’s IBEX 35 slipped 0.27%.
Technology stocks drove much of the rally, with the Stoxx Europe Technology index climbing 2.4% after reports that OpenAI had completed a $6.6 billion share sale, valuing the artificial intelligence company at $500 billion. Semiconductor firms were among the top performers, with ASMI surging 6.6%, ASML up 4.3%, and Be Semiconductor rising 4.5%.
The auto sector also posted robust gains, with the Stoxx Automobiles and Parts index up 2.3%. Stellantis shares jumped 8.3% after the carmaker reported a 6% increase in third-quarter U.S. sales, boosted by growth across Jeep, Chrysler, Ram, and Fiat brands. ING economist Rico Luman cautioned that sales may slow in the fourth quarter but said annual figures should remain positive, noting last-minute electric vehicle sales before the expiration of tax credits. Volvo also rose 1.6% after reporting a 1% increase in September global sales.
In corporate earnings, Tesco lifted its full-year profit outlook after stronger-than-expected first-half results. The British supermarket giant now expects adjusted operating profit between £2.9 billion and £3.1 billion, compared with a previous forecast of £2.7 billion to £3 billion. Tesco shares climbed 5.3% in afternoon trading.
Meanwhile, Pandora shares slipped 1.3% after Deutsche Bank cut its price target, citing rising silver costs. Analyst Alison Lygo suggested the jewelry company could counter the challenge by expanding stainless steel in its product lineup.
Investors also weighed broader market uncertainty as the U.S. government shutdown entered its second day. The political stalemate means the September jobs report will not be released on Friday, clouding visibility for the Federal Reserve ahead of its late October meeting. Markets still expect an interest rate cut later this month following weak private payroll data from ADP.
On Wall Street, the S&P 500 retreated from record levels as U.S. stocks pulled back amid shutdown concerns. In Asia, South Korea’s Kospi surged more than 3% to a record high, powered by Samsung Electronics and SK Hynix.
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