European stocks closed today, Friday, at an unprecedented peak for the second consecutive day following gains from Standard Chartered shares after a strong earnings report. However, comments from European Central Bank (ECB) President Christine Lagarde made investors cautious. The Stoxx 600 index rose four percent, marking the fifth consecutive week of gains, with French and German stocks closing at unprecedented highs. The benchmark index increased more than one percent during the week, largely thanks to a surge in technology stocks driven by strong expectations from American chipmaker Nvidia. Chemical and automotive shares were among the biggest gainers today, each rising one percent. Bank shares increased 0.8 percent, bolstered by a 4.9 percent jump in Standard Chartered shares as the British bank announced a $1 billion share buyback and rewarded shareholders with dividends after an 18 percent rise in profits for 2023.
In comments that dampened sentiment, Lagarde stated today that relatively good wage growth data in the fourth quarter is encouraging but not sufficient to give the central bank confidence that it has defeated inflation. The head of the German Federal Bank, Joachim Nagel, remarked that the European Central Bank should resist the temptation to cut interest rates prematurely, especially before crucial wage data is released in the second quarter.
