European Stocks Rise on Positive Asian Market; H&M Abandons Key Target

European stock markets experienced an uptick on Thursday, driven by positive momentum from Asian markets amid hopes for further stimulus measures from China.

As of 03:05 ET (07:05 GMT), Germany’s DAX index rose by 1.1%, France’s CAC 40 climbed 1.2%, and the UK’s FTSE 100 increased by 0.6%.

### Is More Chinese Stimulus on the Horizon?

European indices reacted positively, following significant gains in Asia, with Japan’s Nikkei and key Chinese indices each finishing more than 2% higher. This surge comes in light of a Bloomberg report indicating that Chinese authorities are contemplating a $142 billion support package to assist major banks, adding to stimulus measures announced earlier in the week.

These developments suggest that Chinese leaders recognize the need for additional efforts to steer the world’s second-largest economy toward its official growth target of 5%. The economic slowdown in China has notably affected major European exporters.

### Swiss National Bank Expected to Cut Rates Again

Data released on Thursday indicated that the GfK German consumer climate index stood at -21.2, surpassing expectations of -22.4, but still reflecting challenges in Europe’s largest economy.

Focus will likely shift to the Swiss National Bank (SNB) as it is anticipated to lower rates by 25 basis points in its third consecutive meeting of cuts. There will also be several speeches from Federal Reserve and European Central Bank officials.

### H&M Abandons Full-Year Earnings Goals

In corporate news, shares of H&M fell over 7% after the company announced it no longer expects to meet its full-year earnings margin target and reported an operating profit that was below expectations for the June-August period.

Additionally, German chemicals firm BASF has reduced its dividend proposal for the 2024 fiscal year as part of a revised corporate strategy.

### Crude Prices Decline Following Saudi Arabia Report

Oil prices fell on Thursday after reports emerged that Saudi Arabia, the leading oil exporter, would abandon its ambitious crude price targets in favor of boosting production levels.

As of 03:05 ET, Brent crude dropped 2.3% to $71.25 per barrel, while U.S. crude futures (WTI) decreased by 2.4% to $68.05 per barrel. The Financial Times reported that Saudi Arabia plans to step away from its unofficial price target of $100 per barrel in light of a potential increase in output.

Moreover, Libyan oil supply could soon return to the market, following an agreement between representatives from the country’s eastern and western factions on appointing a new central bank governor—a move expected to address the crisis that has curtailed at least 1 million barrels per day of production.

This chatter about increased supply overshadowed the latest figures from the Energy Information Administration, which reported that U.S. oil inventories fell more than anticipated last week.