European shares hit record high
The pan-European STOXX 600 rose 0.5% to 614.57 points
European shares scaled a new record high on Thursday, boosted by technology and financial stocks as investors assessed several positive earnings updates and signs of resilience in the German economy.
The pan-European STOXX 600 rose 0.5% to 614.57 points. Technology stocks added 2.3% and hovered at levels last seen in 2000, while financial services climbed 2.2%.
Top chip equipment maker ASML shares surged 11.2% to a record and surpassed the $500 billion market value mark, after strong earnings from TSMC, the world’s leading producer of advanced AI chips, buoyed sentiment across the semiconductor industry.
Adding to the optimism, VAT Group reported better-than-expected preliminary Q4 results, sending shares of the semiconductor supplier up 14% to their highest since July 2024.
Europe is behind on the capital expenditure when it comes to AI infrastructure. There are bottlenecks that we have to be aware of, but there is almost certainly a bigger role the European tech industry can play when it comes to AI, said Shaan Raithatha, a senior economist at Vanguard’s Investment Strategy Group.
Financials were boosted by strong updates from British money manager Schroders and Swiss private equity firm Partners Group.
Schroders climbed 9.8% after it said improved fees would help annual profit surpass estimates, while Partners Group gained 7.6% following a disclosure that it had received $30 billion in new assets last year.
The STOXX index has logged gains in seven of the last 10 sessions this year, underpinned by gains in defence and commodity sectors as geopolitical tensions simmered.
On the flipside, luxury stocks gave up early gains and declined 1.3%, with Richemont dropping 2.4% despite the Cartier owner reporting an 11% rise in third-quarter constant currency sales. Analysts pointed to broader profit-taking in the sector.
Macroeconomic data also added to the upbeat tone on Thursday. Germany’s economy grew for the first time in three years, data showed, propelled by greater government and consumer spending.