European Stocks Rise as Rate Cut Bets Grow, DAX Closes at Record

The DAX Index yield curve displayed on a screen at the Frankfurt Stock Exchange.Photographer: Alex Kraus/Bloomberg
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European stocks rallied close to a record high as companies reported strong earnings and data from Spain and Germany showed cooling inflation, reinforcing expectations for lower interest rates.

The Stoxx 600 Index ended the session with a 0.8% rise, notching a third day of gains, while Germany’s DAX Index advanced 0.7% and closed at a record. Tech shares rallied, with investors brushing off disappointment after US technology bellwether Nvidia Corp. saw its outlook tested by lofty market expectations.