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European stock markets rose on Thursday to a one-month high as Richemont’s strong sales results boosted major luxury companies.
The comprehensive index Stoxx600 rose 0.8%, hitting its highest level since mid-December. Paris’ Cac40 rose 2.1% and Germany’s Dax rose 0.2% to a record high.
Switzerland’s Richemont, which owns the Cartier brand, soared 17.9% after quarterly sales beat market expectations, a positive sign for Europe’s high-end luxury sector.
“Investors took the Richemont update as a signal that the slump in the luxury sector is over,” said Russ Mold, an analyst at AJ Bell, adding that the strong results triggered a rally in other luxury brands. .
The European luxury brand group rose 8%, with LVMH and Hermes up 9.6% and 5.9% respectively.
Taiwan Semiconductor Manufacturing Corp., the world’s largest semiconductor maker, also rose after it forecast overall revenue to rise nearly 25% this year, although it lowered its profit margin target.
The Stoxx Europe 600 technology index, which includes Europe’s biggest chipmakers, rose 1.7%, while Dutch semiconductor company ASML rose 3.3%.
