European stock markets reached their highest level in a month on Thursday, led by strong gains in luxury goods companies. The Stoxx 600 index rose by 0.8 percent, while the French CAC 40 stood out with a gain of 2.1 percent. The German DAX increased by 0.2 percent, reaching an all-time high. Swiss luxury goods manufacturer Richemont, known for its Cartier brand, saw a 17.9 percent increase in its share price following better-than-expected quarterly sales. The results were interpreted by market participants as a sign that the downturn in the luxury goods sector might be over.

Investors interpreted Richemont's update as a signal that the luxury goods sector has passed its lowest point," commented Russ Mould, analyst at AJ Bell.

Other luxury groups also benefited: LVMH and Hermès recorded gains of 9.6 percent and 5.9 percent, respectively. A basket of European luxury goods companies increased by a total of 8 percent. The European semiconductor industry also showed strength after the Taiwanese chip giant TSMC projected revenue growth of about 25 percent for 2024, despite an adjustment of its profitability targets.

The Stoxx Europe 600 Technology Index rose by 1.7 percent, while Dutch chip supplier ASML gained 3.3 percent.