Sept 19 (V7N) – European shares closed higher on Thursday, led by technology and semiconductor stocks, as investors responded positively to the U.S. Federal Reserve’s resumption of its policy-easing cycle. The pan-European STOXX 600 index ended 0.79% up at 554.97 points, while the broader technology index rose 4.1%, marking its largest single-day gain since April 23.
 
The rally was driven by gains in European semiconductor companies, following U.S. chip giant Nvidia’s announcement of a $5 billion investment in struggling peer Intel. European chipmakers mirrored this optimism, with BE Semiconductor rising 7.9%, ASML up 7.7%, and ASMI surging 8.7%.
 
The Fed’s overnight decision to cut interest rates by 0.25 percentage points—the first dovish move since December—also boosted investor sentiment. The central bank signaled potential further cuts in October and December, emphasizing the need to stabilize the labor market. Daniel Coatsworth, investment analyst at AJ Bell, said, “Investors welcomed the steady and measured approach to monetary easing, which indicates no major economic concerns.”
 
Elsewhere in Europe, the Bank of England held its main interest rate at 4% after a prior quarter-point reduction, supporting modest gains in the FTSE 100, which rose 0.2%. Norway’s central bank cut rates by 0.25 percentage points while signaling a slower easing pace in the future.
 
The luxury goods sector and automakers also contributed to gains, with the luxury index up 1.8% and an automaker index rising 1.2%. Danish pharmaceutical company Novo Nordisk surged 6.2% following positive reactions to its presentations at a recent diabetes conference in Vienna, reflecting renewed investor confidence in the company’s growth prospects.
 
However, some stocks faced heavy losses. Swiss packaging company SIG Group dropped 24.3% after issuing a profit warning for 2025 and suspending its dividend. Continental fell 21.9% after spinning off Aumovio, which debuted on the Frankfurt Stock Exchange with a market value of about €3.5 billion. Spanish airport operator Aena declined 4.7% after announcing plans to invest €12.88 billion in terminal upgrades from 2027 to 2031.
 
Political unrest in France added pressure to the markets, as anti-austerity protests continued, urging President Emmanuel Macron and Prime Minister Sebastien Lecornu to abandon proposed budget cuts.
 
The day’s trading reflected a mix of optimism in the technology sector and caution surrounding political and corporate developments across Europe.
 
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