Europe stocks close 1.2% higher as household goods lead gains; luxury giants LVMH and Kering rally

LONDON — European stocks closed higher on Thursday, spurred on by overnight gains in Asia-Pacific markets.

The pan-European Stoxx 600 ended the session up 1.25%, with most sectors and major bourses in positive territory.

Household goods led gains, closing up around 4.6%, while mining and tech stocks added 4.3% and 3%, respectively.

Oil and gas stocks fell 3% as crude prices dropped on a Financial Times report that Saudi Arabia is preparing to scrap its unofficial oil price target of $100 per barrel. Energy firms including BP, Shell and TotalEnergies all ended more than 3% lower.

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The relatively upbeat session for Europe comes after Asia-Pacific markets rose overnight.

Hong Kong's Hang Seng index advanced 4.16%, reaching its highest level since May, while mainland China's CSI 300 extended its winning streak to the seventh day.

Chinese and Hong Kong stocks climbed sharply higher after state media on Thursday afternoon announced that China's top leaders held a meeting that affirmed the government's latest efforts to support the economy.

Meanwhile, Japan's Nikkei 225 climbed 2.79%, while the broad based Topix was up 2.66%, as the Bank of Japan released minutes of its July meeting.

SNB cuts rates

Back in Europe, shares of French luxury giants LVMH and Kering both rose toward the top of the regional benchmark. LVMH shares closed up 9.5%, while Kering shares added 9.6%.

Shares of H&M fell 4.6% after the clothing retailer posted a miss on operating profit and abandoned its earnings margin target.

The Swiss National Bank (SNB) on Thursday cut interest rates by a quarter point, bringing its key interest rate down to 1.0%. The move to lower borrowing costs, which had been widely anticipated, marked the SNB's third rate reduction of 2024.

Stateside, meanwhile, stocks rose Thursday, regaining their footing following the release of upbeat U.S. economic data.

Weekly jobless claims fell more than expected, pointing to a steady labor market. Durable goods orders for August were unchanged compared to economists' expectations for a decline. Elsewhere, second-quarter GDP was also left unrevised at a 3%, fresh data showed.

— CNBC's Lisa Kailai Han and Lim Hui Jie contributed to this report.