The European STOXX 600 index reached a new record high during Thursday’s trading session (November 12), bolstered by strong corporate performance, easing geopolitical tensions, and a shift in investor interest away from artificial intelligence (AI)-related stocks in Asia and the United States.
This gain follows a record-setting close in the previous session. Germany’s DAX index also hit a new high, reflecting broad-based positive sentiment across European stock markets.
Corporate performance has been a primary driver for the markets. Data from LSEG indicates that companies within the STOXX 600 are expected to post quarterly earnings growth of approximately 25%—the strongest growth in four years—with the energy sector making a significant contribution.
Several individual stocks rallied after companies offered more optimistic business outlooks. Siemens shares rose after the company raised its growth projections, while Merck climbed following an upward revision to its annual earnings guidance.
Market sentiment was further supported by a decline in oil prices, which has eased import cost pressures for European nations. Additionally, European markets have relatively less exposure to AI-related stocks, providing a buffer against the sell-offs seen in the technology sectors of the United States and Asia.