European stocks reach a new high supported by basic resources sector

European stocks rose to unprecedented levels on Thursday, supported by stocks linked to basic resources and a strong appetite for risk, while traders awaited a set of economic data from the euro zone and the United States.

According to Reuters, the European STOXX 600 index rose 0.8% to 509.96 points by 0818 GMT.

The basic resources sub-index led sector gains, recording a 2.7% jump, with the prices of most metals rising after the Federal Reserve maintained its expectation of adopting three interest rate cuts this year, while gold prices rose to an unprecedented level.

Technology stocks advanced 2.1%, and real estate stocks, which are highly susceptible to interest rates, increased 1.7%, with increased appetite for risk following the expectations of the US Central Bank.

Investors are awaiting the preliminary reading of business activities in the Eurozone and the United States for the month of March due later in the day, which may provide indications about the interest rate cutting cycle from central banks.

On the corporate level, clothing retailer Next kept its sales and profit expectations for the current year unchanged after announcing a slightly better-than-expected increase in annual profits. The company’s shares rose 4%.