European equity markets are entering the new week with renewed momentum, supported by fresh highs across key regional benchmarks and signs that market leadership is becoming less dependent on a narrow group of US technology names.
The DAX ended last week at the highest weekly close in its history, finishing at 25,779 points after a 4.5% weekly gain. During the session, it also touched a new intraday record of 25,827 points. The Stoxx Europe 600 advanced 2.7% to around 653 points, also reaching a new all-time high. By contrast, the Nasdaq 100 gained only 0.7% for the week and fell 1.6% on Friday, highlighting a possible shift in market preference as some technology-led momentum in the US begins to moderate.
While artificial intelligence remains a central driver of global risk appetite, recent trading indicates that capital is being allocated more selectively. Semiconductor and memory chip names linked to AI infrastructure continue to attract interest, but there is also greater attention on value shares and domestically focused companies that had previously lagged.
Germany’s market has gained additional support from policy signals tied to the federal government’s economic programme. While the measures have not been viewed as a dramatic fiscal reset, they are being read as evidence that reform is moving in a constructive direction. Measures aimed at reducing bureaucracy, easing administrative burdens and adding some flexibility to the labour market are relevant because they touch on competitiveness, timing and business confidence rather than short-term stimulus alone.
The debate around artificial intelligence remains central to the outlook. Some market observers do not see a full technology bubble, noting that several classic warning signs are not flashing at extreme levels. However, expectations for future profit growth have risen alongside share prices, which raises the risk that even solid results may not be enough if guidance falls short of market hopes.
From a technical perspective, the DAX’s move into record territory is notable because it follows several failed attempts to break higher in recent months. Once a major index moves beyond a long-standing ceiling, attention often turns to whether there is enough follow-through buying to sustain the move. Chart-based expectations now point to possible further upside towards 26,300 points, though that remains dependent on market breadth, earnings delivery and the absence of renewed macroeconomic pressure.
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