Precise Investors Editorial Team
The EURO STOXX 600 gained 0.4%, boosted by utilities, with German and French indexes climbing 0.5% and 0.7% respectively
Shares climbed globally on Tuesday, fuelled by optimism around AI luring money into technology stocks, while bets on U.S. interest rate cuts lifted gold to a record high.
The EURO STOXX 600, which has tended to lag in the rush to tech stocks, gained 0.4%, boosted by utilities, with German and French indexes climbing 0.5% and 0.7% respectively.
Dutch chip equipment maker ASML dropped 1.2%, however, keeping gains in check.
On Monday, Wall Street was led to another record as Nvidia announced it would invest up to $100 billion in OpenAI with the first data centre gear to be delivered in the second half of 2026.
The seemingly inexorable rise in tech stocks attracted money from momentum funds and option players, and fuelled gains for wider indexes.
It’s been the Magnificent 7 driving the gains, Deutsche Bank analysts wrote, referring to seven dominant tech companies that have driven the U.S. stock market’s growth.
The profile of U.S. equity gains is looking very much like 2023 and 2024 again, where the annual gains are being driven by a very narrow group of stocks, they wrote.
Chris Weston, head of research at broker Pepperstone, noted that investors were hedging their exposure to stocks by buying gold.
The metal hit a record at $3,759.02 per ounce, and was nearly 9% higher for the month so far.
S&P 500 futures were little changed, while Nasdaq futures slipped 0.3%, after hitting new peaks overnight.
Euro zone bond yields erased losses after the release of data on the region’s business activity. The benchmark 10-year German yield moved to 2.75%, flat on the day, after data showed that activity grew in Europe’s largest economy an accelerated pace in September.
In Asia, chip sectors have benefited from the demand for tech stocks, with South Korean stocks up 0.5%, having surged over 9% this month.
Nikkei was closed for a holiday but has climbed 6.5% so far in September, while Taiwan has risen almost 7%.
Chinese blue chips recovered losses to trade flat, its liquidity-fuelled bull run petering out in recent days.
MSCI’s broadest index of Asia-Pacific shares outside Japan eked out a miniscule daily gain, and is still 5.5% higher on the month.
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