STOXX 600 hits record high on China-driven rally, set for weekly gains

(Reuters) – European shares touched a record high on Friday, driven by a persistent rally in China-exposed stocks on news of massive economic stimulus from Beijing, while gains in Moncler and luxury stocks also supported the index.

The pan-European index edged 0.2% higher to an all-time high of 526.70 points, as of 0716 GMT. The benchmark index is set to log its best week in more than a month, if gains hold.

China-focused luxury stocks lifted the index, with LVMH, Hermes, Kering (EPA:), Hugo Boss and Burberry gaining between 3% and 4%.

Chinese stocks are headed for the best week since 2008.

Earlier in the day, China’s central bank cut the borrowing cost of its seven-day reverse repurchase agreements, as part of the biggest stimulus package since the pandemic. [MKTS/GLOB]

Shares of Moncler surged 11.8% after CEO Ruffini struck a deal with LVMH, which will see LVMH partner with Ruffini to make an expanded investment in the Italian luxury group.

The region’s personal & household goods sector led sectoral gains with a 1.6% jump.

French consumer prices rose less than anticipated in September, according to CPI figures. The was up 0.3%.

Spain’s was trading flat after data signalled the country’s inflation eased to 1.7%.

Investors are on the lookout for the euro zone’s consumer confidence figures, due at 0900 GMT, and German employment print at 0755 GMT. European Central Bank’s chief economist Philip Lane will be speaking on fiscal policy at 0815 GMT.