European stocks rose at quarter-end as markets focused on central bank commentary, economic data and company updates across the region.
The pan-European STOXX 600 moved higher on Tuesday and reached record territory, supported by gains across several major markets. Germany’s DAX, France’s CAC 40, London’s FTSE 100 and Italy’s FTSE MIB all traded higher, giving the session a broadly positive tone.
Italy stood out over the quarter, helped by strength in banking shares. Merger and acquisition activity in the sector has raised expectations that consolidation could improve scale, efficiency and shareholder returns. The UK market remained weaker by comparison, with concerns around public finances and slower growth weighing on sentiment.
The European Central Bank’s annual forum in Sintra kept attention on the path for interest rates in the eurozone. Markets were watching comments from senior policymakers for guidance on how quickly borrowing costs could fall and whether inflation risks still limit the scope for easier policy. Remarks from senior officials at the US Federal Reserve and the Bank of England also carried weight because they could affect bond yields, currencies and equity valuations.
Diplomatic activity involving the United States, Qatar and Iran was being monitored because any shift in Middle East tensions could affect energy prices and wider market confidence.
JPMorgan European Discovery Trust plc is an investment trust company. The Investment Trust JEDT objective is to achieve capital growth from a portfolio of quoted smaller companies in Europe, excluding the United Kingdom.
