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 United States.
The pan-European index gained 0.3 percent 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 percent to a new high.
STOXX 600 companies are on track to post quarterly profit growth of 25 percent, the strongest in four years, according to LSEG-compiled data, with energy companies providing a major boost. Siemens rose 3.8 percent after the industrial technology group raised its growth outlook, while Merck gained 1.6 percent 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, which slipped below $100 a barrel after the United States said no imminent attacks on Iran were likely. The region's smaller exposure to AI-linked stocks has also helped it outperform Asian and U.S. peers at a time when traders are scrutinising the AI trade. The STOXX 600 has risen 4.7 percent so far this quarter, while the S&P 500 is down 0.4 percent.
