European shares start New Year at 23-month high on energy boost

(Reuters) – Europe’s benchmark stock index hit a near two-year high on Tuesday, as investors entered 2024 with undeterred hopes that major central banks might finally deliver interest rate cuts, with energy stocks leading the charge.

The pan-European was up 0.3% by 0811 GMT, hitting a 23-month high, after a long weekend for New Year Day holiday.

Expectations of softer monetary policy drove a 12.7% jump in the benchmark index in 2023, almost fully rebounding from a 12.9% slump in the previous year after major central banks delivered rapid rate hikes to conquer spiralling inflation.

Key economic data remain at the top of investors’ radar, including a monthly eurozone PMI reading later in the day and producer prices on Friday. Across the Atlantic, U.S. non-farm payrolls for December will also be crucially parsed for policy cues.

Energy shares jumped 1.4%, tracking higher oil prices.

Chip machine manufacturer ASML (AS:) lost 1.4% after the Dutch government partially revoked an export licence for the shipment of some chip-making equipment to China.

Denmark’s Maersk jumped 4% to top the STOXX 600. The company still plans to sail more than 30 container vessels through the Suez Canal and the Red Sea.

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