European equity markets surged, with technology shares leading the way, after the U.S. Federal Reserve’s decision to cut interest rates for the first time since December. The pan-European STOXX 600 index rose by 0.67%, while tech-sector stocks jumped roughly 2.1%, signaling a rebound after a summer of losses.
But the gains were not universal. Swiss packaging giant SIG crashed, slipping about 20%, as it issued a stark profit warning and suspended its dividend. British retailer Next declined by more than 5% on disappointing sales outlooks. Meanwhile, German firm Continental dropped heavily after spinning off its auto supplier unit Aumovio.
On the healthier side of the ledger, Novo Nordisk rallied approximately 2.7% thanks to promising results from a recent weight-loss drug trial. Across Europe, investors are keeping a close eye on how governments in Germany and France plan to address sluggish growth and mounting public debt, as fiscal policy becomes a major focus in this cautious market environment.
Monetary policy dynamics are also in flux: Norway’s central bank followed the Fed with its own rate cut, while the Bank of England is holding rates steady—underscoring a divergence among major global central banks. The overall tone remains cautious as markets digest the Fed’s signal that further rate cuts are possible, but will likely come gradually.
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