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Tech surge moves STOXX 600 to near one-week high

Europe's STOXX 600 ended the week on a high note, reinforced by a rally in tech stocks, while investors analysed the euro zone inflation report to examine the likelihood of a larger rates of interest cut in December.

The pan-European primary stock index reversed earlier losses and was up 0.6% at 510.25 points on Friday, logging its first month-to-month gain considering that August. It increased 1% in November. On a. weekly basis, it logged a modest 0.2% decrease.

Innovation stocks were the greatest increase to the. index, gaining 1.6%.

Trading volumes were expected to be low, with the U.S. equity market open for half a day following the Thanksgiving. holiday on Thursday.

Euro zone flash inflation increased to 2.3% on an annual basis in. November, in line with forecasts.

Markets are now pricing in a more than 80% chance of a 25. basis-point cut at the European Reserve bank's conference on. December 12.

Capital Economics' analysts believe the case for a 50 basis. point cut still stays strong. Data released this week recommend. that the euro-zone economy is struggling, they stated in a note.

While the STOXX 600 has actually attained a modest month-to-month gain over. 3 months, it substantially lagged behind the U.S. S&P 500 . Investor belief towards the European bloc was. moistened by a number of factors, consisting of the potential for U.S. tariffs, political unpredictability in France, and geopolitical. stress.

Auto stocks were among the worst hit in November,. tore down by concerns that U.S. President-elect Donald. Trump's proposed tariffs on Mexico might be more damaging for. European car makers than any direct tariffs on EU products.

Defence stocks on the other hand, gained one of the most. among sectors, mainly due to the Russia-Ukraine conflict.

France's CAC 40 has been one of the worst-performing. bourses in the area so far this month due to the nation's. political uncertainty.

Prime Minister Michel Barnier dropped plans to raise. electrical power taxes in his 2025 budget plan, bowing to far-right. pressure. The spending plan problems had actually pushed France's borrowing expenses to. match those of Greece for the first time on Thursday.

The standard resources sub-index gained 1.6%, driven by. a 5.4% rise in miner Anglo American following a. Jefferies' rating upgrade to purchase from hold.

BAE Systems lost almost 5% after BofA International. downgraded the defence company to underperform from neutral.

French inflation for November edged up from last month, as. anticipated, while German retail sales fell more than anticipated. in October.

(source: Reuters)