European equities have closed at record levels, driven by a powerful rally in technology shares and reinforced by growing conviction that the US Federal Reserve may soon cut rates.
The European tech sector, often overshadowed by its US counterpart, has taken centre stage in this advance. Chipmakers and software firms were among the strongest performers, signalling that the structural demand for digital infrastructure, artificial intelligence, and high-end manufacturing is reaching a broader investor audience.
The probability of a near-term US Federal Reserve cut has risen as the absence of updated labour statistics has reinforced the perception that tightening may be over. While Europe’s central bank is pursuing its own path, global liquidity shifts are feeding into European valuations and credit conditions.
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.
