STOXX 600 hits all-time high, set for weekly gains

European shares touched a record high on Tuesday, driven by continued gains in China-exposed stocks on news of massive economic stimulus measures from Beijing, with gains in Moncler and luxury goods companies also supporting the index.

According to Reuters, the STOXX 600 rose 0.2% to an all-time high of 526.70 points by 07:16 GMT. The index is set to record its best weekly performance in more than a month if it continues its upward trend.

The index was boosted by China-focused luxury goods stocks, with Hermes, Kering, Hugo Boss and Burberry rising between 3% and 4%, according to Reuters.

Earlier today, China’s central bank cut borrowing costs for seven-day reverse repurchase agreements as part of the biggest stimulus package since the coronavirus pandemic.

Moncler shares jumped 11.8% after its chief executive Remo Ruffini struck a partnership deal with LVMH to invest more heavily in the Italian luxury goods group. The region’s personal and home goods sector led sector gains, rising 1.6%.