European stocks reached a new record high on Thursday, with the STOXX 600 rising 0.4% to 665.61 points as strong corporate earnings and lower energy prices supported market gains.
The index has gained almost 5% during the current quarter, outperforming the US S&P 500, which has fallen 0.4% over the same period.
Corporate earnings have been a major driver, with STOXX 600 companies expected to report quarterly profit growth of around 25%, the strongest increase in four years. Energy companies have contributed significantly, while gains have also been recorded across healthcare, industrials, consumer goods and financial services.
Several major companies have raised their outlooks following positive results. Siemens advanced after increasing its growth projections, while pharmaceutical group Merck gained after raising its 2026 profit guidance for the third time this year.
Falling oil prices have provided further support, with crude moving below $100 a barrel as concerns over Middle East tensions eased. Lower energy costs could help European businesses manage operating expenses and reduce inflationary pressures.
European equities have also benefited from changing investment preferences, with investors reassessing highly valued technology stocks in the US and Asia. This has increased interest in established European businesses across industrial, healthcare, consumer and financial sectors.
However, performance remains mixed. Luxury goods and automotive stocks have fallen more than 16% this year, reflecting weaker demand in China and increased competition from Chinese electric vehicle manufacturers.
The latest record reflects stronger earnings expectations and renewed demand for European shares, with corporate performance continuing to support the region’s stock market.
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