European stocks concluded September on a positive note, marking their best performance for the month since 2019. Investor optimism, fueled by resilient US economic growth and the prospect of lower interest rates, increased risk appetite across the board. The STOXX Europe 600 Index closed 0.5 per cent higher, positioning it approximately 1 per cent below its March record. The index gained nearly 1.5 per cent this month, a notable achievement during a traditionally weak seasonal period.
However, not all stocks participated in the rally. BHP Group, a leading global resources company, experienced a 1.9 per cent share price decline. This drop followed reports that China’s state-run iron ore buyer instructed major steelmakers and traders to temporarily cease purchases of all new BHP cargoes. Energy and auto stocks also faced headwinds, while media and personal care shares showed stronger performance.
Among individual stocks, ASOS, the online fast fashion chain, saw a 4.8 per cent decline. The company cautioned that full-year earnings would likely be at the lower end of expectations as it navigates a complex turnaround strategy. Elsewhere, lumber stocks Stora Enso and UPM-Kymmene experienced dips after the US imposed tariffs on imports of softwood timber and lumber, as well as levies on kitchen cabinets, vanities and upholstered wood products.
Overall, European stocks have traded within a relatively narrow range over the past four months. Investors have been carefully weighing signs of a slowing US economy against expectations for further interest-rate cuts by the Federal Reserve. Despite these uncertainties, the blue-chip Euro Stoxx 50 is nearing its March record, indicating underlying market strength.
