European equities are trading close to record levels on Thursday, driven by strong performances in healthcare and semiconductor sectors. Investors appear confident that the ongoing U.S. government shutdown will be short-lived and unlikely to significantly impact the broader economy.
Adding to the bullish sentiment, a weaker-than-expected private-sector payrolls report revealed a drop of 32,000 jobs in September, fueling expectations for additional Federal Reserve interest rate cuts.
Concerns over the Fed’s independence have also eased somewhat following the U.S. Supreme Court’s decision to review whether President Donald Trump can remove Fed Governor Lisa Cook.
Major indices are showing robust gains, with Germany’s DAX and France’s CAC 40 both climbing around 1.5%, while the U.K.’s FTSE 100 edged up slightly by 0.1%.
In the U.K., financial services activity stabilized last month after experiencing its steepest decline since the onset of the pandemic, according to the latest CBI financial services survey.
Semiconductor stocks are surging, with ASML (EU:ASML) and ASM International (EU:ASM) gaining momentum after South Korea’s Samsung Electronics and SK Hynix signed an initial chip supply agreement for OpenAI’s Stargate project.
Healthcare equities are also extending their rally following Pfizer’s (NYSE:PFE) agreement with the U.S. government on most-favored-nation pricing for its medications.
Worldline (EU:WLN) shares jumped in Paris after the global payment solutions provider entered a strategic partnership with China’s YeePay, focusing on airline and travel payments.
German chemical giant BASF (TG:BAS) showed strong gains after reaffirming its financial targets for 2028, while supermarket chain Tesco (LSE:TSCO) climbed after increasing its full-year profit forecast.
Conversely, U.K. utility National Grid (LSE:NG.) saw a decline after reporting first-half fiscal 2026 trading results that came in line with market expectations.
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