European shares hit a month high, but then erased increases: what happened

European shares hit a month high, but then erased increases: what happened

The European stocks closed flat this Monday, September 4, as earnings buoyed by optimism after the China’s stimulus measures to revitalize its economywhile the papers of the Danish drugmaker Novo Nordisk hit all-time highs.

The pan-European STOXX 600 index was stable at 457.96 points at the closeafter having played early in the day four week maximum.

The technology sector gained 0.5%, as shares of Dutch semiconductor equipment maker ASML rose 0.8%.

The mining sector rose 0.6%as iron ore futures rallied on optimism about China’s policy to support the real estate sector, the main steel producer.

China stepped up measures to boost the country’s faltering economywith major banks paving the way for further cuts in lending rates and sources saying Beijing plans further action, including the relaxation of restrictions on home purchases.

“The slowdown that we have observed in China and this reorientation from stimulating consumption towards a more technical economy with high added value is taking much longer than expected”said Michael Browne, chief investment officer at Franklin Templeton-owned Martin Currie.

Separately, according to sources and a document seen by Reuters, embattled Chinese developer Country Garden has won approval from its creditors to extend payments on an onshore private bond, in significant relief for the company and the property sector.

Luxury heavyweight LVMH lost 0.4%cutting early gains and putting pressure on the STOXX 600.

Novo Nordisk rose 0.7%reaching an intraday record, after the Danish pharmaceutical company launched its weight-loss injection Wegovy in Britain. Novo, with a market capitalization of $424.7 billion, overtook LVMH as Europe’s most valuable publicly traded company on Friday.

Source: Ambito

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