Stimulus measures from China have lifted stock markets across Europe, particularly benefiting industries with strong exposure to Chinese consumer demand, such as luxury goods and automotive stocks. Both the Euro Stoxx 600 and Germany’s DAX index hit new record highs.

Following the Federal Reserve’s recent rate cut, global markets continued their upward trend, with risk-on sentiment reinforced by China’s latest stimulus package announced earlier this week.

European markets were the main beneficiaries of China’s easing policies. Luxury and automotive sectors, which are heavily reliant on Chinese markets, led the rally.

In commodities, metal prices surged, driven by optimism over increased demand in China. Gold hit a new peak, while silver and copper also posted significant gains. On the other hand, crude oil prices fell to a two-week low after OPEC+ confirmed plans to increase output in December.

The Euro Stoxx 600 rose by 0.93%, Germany’s DAX climbed 2.77%, France’s CAC 40 gained 3.22%, and the UK’s FTSE 100 increased 0.67% over the past five trading days.

Both the Euro Stoxx 600 and the DAX hit fresh highs on Thursday, fueled by gains in the luxury and automotive sectors, following China’s policy actions. Technology stocks also outperformed, mirroring Wall Street’s performance, after US chipmaker Micron raised its revenue outlook.

Key luxury stocks saw strong weekly gains, with LVMH rising 11.5%, ASML up 5.38%, Hermès surging 13.63%, L’Oréal climbing 9.91%, and Siemens AG advancing 7.97%.

Mining stocks were also lifted by higher metal prices. Rio Tinto increased 11.28%, Glencore rose 8.10%, and Anglo American jumped 11.70% during the week.

In contrast, energy stocks lagged due to falling oil prices. Shell dropped 6.45%, BP fell 7.49%, and TotalEnergies lost 4.37% over the same period.

Meanwhile, Commerzbank shares hit a 12-year high after Italian lender UniCredit raised its stake to 21%, following the acquisition of an additional 9% stake earlier in the week. A full takeover is seen as increasingly likely, with the German government still holding a 12% share in the bank.

On the economic front, flash data from S&P Global indicated a sharp contraction in eurozone business activity across both the manufacturing and services sectors in September. The weak figures have heightened expectations that the European Central Bank will expedite its plans for rate cuts.