European Stocks Extend Multi-Decade Highs

European stocks closed higher on Wednesday, extending their strong momentum from the last week and a half and continuing to benefit from the outlook of more accommodative monetary policy and strong risk appetite in the US. The Eurozone’s Stoxx 50 added 0.3% to reach a new 23-year high of 5,080, while the pan-European edged above the flatline to extend its record-high to 512.

Spanish inflation for March, among the first releases in the Eurozone for the period, was below expectations at 3.2%.

Additionally, improvements in economic sentiment surveys compiled by the EU raised hopes that some traction in the currency bloc’s economy may favor its corporate backdrop.

Gains were observed in most key sectors of the Stoxx 50, with Engie and Enel both adding nearly 1.5% to set the pace for utilities.

Additionally, Inditex advanced by more than 2%, supported by strong results and the positive guidance from its Swedish competitor H&M, which lifted the latter’s shares by 12% to lead the Stoxx 600.