Europe's STOXX 600 hits record high on strong earnings, easing Mideast tensions

Detailed summary

Europe's benchmark STOXX 600 hit a record high on Thursday, boosted by strong corporate earnings, easing geopolitical tensions and investors rotating out of AI-linked stocks in…

Nov 12 (Reuters) - Europe's benchmark STOXX 600 hit a record high on Thursday, boosted by strong corporate earnings, easing geopolitical tensions and investors rotating out of AI-linked stocks in Asia and the US.

The pan-European STOXX 600 gained 0.3% to 665.38 points by 0806 GMT, after closing at record levels in the previous session. Equity benchmarks in most major regional markets were also higher, with Germany's DAX rising 1% to a new high.

Strong corporate earnings despite pressure from energy-driven inflation and expectations for higher interest rates have supported European equities in recent months.

STOXX 600 companies are on track to post quarterly profit growth of 25%, the strongest in four years, according to LSEG-compiled data, with energy companies providing a major boost.

Siemens rose 3.8% after the industrial technology group raised its growth outlook, while Merck gained 1.6% after the drugmaker increased its 2026 profit guidance for a third time this year.

Investors were also relieved by lower oil prices, a key import cost for Europe, that slipped below $100 a barrel after the US said no imminent attacks on Iran were likely.

The region's smaller exposure to AI-linked stocks has also helped it outperform Asian and US peers at a time when traders scrutinize the AI trade.

The STOXX 600 has risen 4.7% so far this quarter, while the S&P 500 is down 0.4%.

(Reporting by Johann M Cherian and Anjana Jayakrishnan Nair in Bengaluru)

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