European Stocks Rise: 5-Month Highs Approaching

European stocks rose yesterday, to approach the highest level in 5 months, at a time when investors exceeded the issue of high inflation in the United States and found support for morale from the issuance of strong business results.

During the trading, the European Stoxx 600 index rose 0.2%, driven by the rise of the shares of mining and chemical companies. The shares in the world in general increased despite data that showed the high prices of producers in the United States, which reduced the expectations that the Federal Reserve (the US Central Bank) reduce interest rates by 50 basis points next month.

Despite weak Chinese economic data indicating traces of customs duties. The Danish NSA share jumped for 9.1% of the energy cable solutions after the company had made its financial forecast for the whole year.

But ASML decreased by 1.5% with the company, the world’s largest supplier, to computer chips, to pressure after the American Apple Materes Company reduced its expectations for profits for the fourth quarter due to the weak demand from China and the unknown consequences yet for customs duties.

The Dutch company issued a similar warning in mid -July, saying that it is possible not to register growth in 2026. The share of the PICICENDAD declined 0.7%, and the ASMI share fell 1.1%.

The Danish Pandorah share for the jewelry industry recorded the largest loss of the Stoxx 600 index, and it fell 11.9% after the company’s revenues came from the basic operations in the second quarter less than the estimates.

Japanese height

The Japanese Nikai Index concluded the session at the highest level ever at a time when the yen retracted, and showed the state’s strengths of the country’s economy with expectations.

The pace of the increase in the Nikai index accelerated in the afternoon session, as it rose 1.7% to close at a record peak of 43378.31 points, and the index touched the highest level during the session at 43451.46 points earlier in the week.

The broader Topics index rose 1.6% to 3107.68 points, which is also a high standard closure level. The decline in the yen during the night supported the shares of companies that export their products, while data issued on Friday showed that the Japanese economy grew at one percent on an annual basis from April to June, exceeding expectations. Analysts expect the full effect of American customs duties to grow later.

Bond returns

Wattaro Akayama, economist at Nomura Sikiorettes, said: The high returns of US Treasury bonds and US Treasury Secretary Scott Besent on Thursday that the Bank of Japan is likely to raise interest rates are factors that contributed to the financial stock leap.

The banking sector came to be the biggest winners on the Topix index, as the 4.7% sub -index jumped to the highest level since May 2006. The shares of Mitsubishi UFG’s financial group rose by 6%, recording gains for the eighth session, respectively, to a high record level. 177 shares rose to the Nikai index, while 46 shares fell.