Alibaba Increases China Tech Optimism, Helping Stocks Rise – Europe Market Wrap
European equities gained, following big gains in Asian markets, as Alibaba’s results fuelled a renewed surge of excitement about AI.
The Stoxx 600 index rose 0.3%. The day’s largest swings came in Asia, as Alibaba surged 14%, propelling Chinese technology stocks to their highest level since 2022. US stock futures were flat, with S&P 500 contracts rising 0.1%.
Stocks in Europe have soared this year, fuelled by strong profits and optimism about Ukraine’s peace talks. While tariff concerns and a spat between Trump and Ukraine’s Zelenskiy have weighed on the mood in recent days, the Stoxx 600 index is still expected to rise 0.2% this week, marking the ninth straight climb.
Meanwhile, the Euro dropped by 0.3% against the Dollar. According to purchasing manager data, commercial activity in the region hardly increased in February, raising concerns that the bloc remains stagnant.
Traders were also looking ahead to Germany’s weekend election, expecting that the outcome would allow the Conservative front-runner to create a government capable of implementing economic reforms and loosening borrowing laws. If Europe’s largest economy can increase defence spending, it may help soothe a market worried by Washington’s efforts to strengthen ties with Russia, they added.
