European Stocks Rally Following US Inflation Data

European stock markets experienced a significant uplift on Thursday, buoyed by the latest US consumer price index report indicating a cooling in core inflation. This development keeps the door open for potential rate cuts by the Federal Reserve, injecting optimism into the market.

Luxury Stocks Lead the Charge

Luxury stocks were among the top performers, with Richemont, the owner of Cartier, delivering an upbeat earnings update. LVMH also enjoyed its best day since 2022, further propelling the sector's gains.

Semiconductor Sector Surges

Semiconductor companies also saw a notable increase, following Taiwan Semiconductor Manufacturing Co's announcement of a record quarterly profit, signaling strong demand and robust growth prospects for the sector.

Market Indices Show Strong Gains

Germany's DAX index closed up by 0.39%, with Zalando SE leading the charge with an 8.57% surge. The UK's FTSE 100 improved by 1.09%, driven by a 4.31% increase in Rightmove PLC. France's CAC 40 advanced by 2.14%, and the Euro Stoxx climbed by 1.48%, with LVMH Moet Hennessy Louis Vuitton SE rising 9.15%.

Currency Movements

On the currency front, the euro remained stable against the dollar, trading at $1.03015 at 5:33 pm CET. Similarly, the pound was steady against the greenback, exchanging at $1.22373.