European bourses tracked moderately higher midday Thursday as traders renewed their interest in tech issues following a solid earnings report from German tech conglomerate Siemens, while also weighing the odds for peace initiatives in Eastern Europe. Property and energy stocks led the gainers, showing robust performance, while retail issues lagged behind.
Investors were also eyeing Wall Street futures, which were modestly signaling green, despite lower closes overnight on Asian exchanges. The Eurozone gross domestic product (GDP) expanded by a seasonally adjusted 0.4% in Q3, with the broader European Union experiencing growth of 0.3%, as reported by Eurostat.
Year-over-year, the Eurozone GDP showed an increase of 0.9%, while the EU's GDP rose by 1%. The pan-continental Stoxx Europe 600 Index saw an uptick of 0.8% mid-session. Specifically, the Stoxx Europe 600 Technology Index surged by 2%, and the Stoxx 600 Banks Index gained 0.5%. Additionally, the Stoxx Europe 600 Oil and Gas Index was up 1.3%, while the Stoxx 600 Europe Food and Beverage Index saw a rise of 0.4%. The REITE, a European REIT index, rose by 1.1%, contrasting with a decline of 0.1% in the Stoxx Europe 600 Retail Index. Looking at national market indexes, Germany's DAX increased by 1.3%, while the FTSE 100 in London was up by 0.4%.
The CAC 40 in Paris gained 1.1%, and Spain's IBEX 35 saw a rise of 0.5%. Yields on benchmark 10-year German bonds also dipped, hovering around 2.36%. In the oil market, front-month North Sea Brent crude oil futures climbed by 0.2%, reaching $72.45 per barrel. The Euro Stoxx 50 volatility index decreased by 2.8% to 17.19, indicating below-average volatility for European stock markets in the next 30 days, which is viewed as a positive signal.
A reading above 20 suggests choppier markets ahead, while below 20 indicates calmer exchanges..