EUROPEAN shares scaled a new record high on Thursday, boosted by technology and financial stocks as investors assessed several positive earnings updates and signs of resilience in the German economy.
The pan-European Stoxx 600 advanced 0.5 per cent to 614.57 points. Technology stocks gained 2.3 per cent and hovered at levels last seen in 2000, while financial services jumped 2.2 per cent.
Top chip equipment maker ASML shares soared 11.2 per cent to a record and surpassed the US$500 billion market value mark, after strong earnings from TSMC, the world’s main producer of advanced AI chips, buoyed sentiment across the semiconductor industry.
Adding to the optimism, VAT Group reported better-than-expected preliminary Q4 results, sending shares of the semiconductor supplier up 14 per cent to their highest since July 2024.
“Europe is behind on the capital expenditure when it comes to AI infrastructure. There are bottlenecks that we have to be aware of, but there is almost certainly a bigger role the European tech industry can play when it comes to AI,” said Shaan Raithatha, a senior economist at Vanguard’s Investment Strategy Group.
Financials were boosted by strong updates from British money manager Schroders and Swiss private equity firm Partners Group. Schroders jumped 9.8 per cent after it said improved fees would help annual profit surpass estimates, while Partners Group rose 7.6 per cent following a disclosure that it had received US$30 billion in new assets last year.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
The Stoxx index has logged gains in seven of the last 10 sessions this year, underpinned by gains in defence and commodity sectors as geopolitical tensions simmered. The index has also outperformed the US benchmark S&P 500 so far this year.
“It’s a good move to sort of just diversify out of the US to some extent, not within US, but also look outside the US,” said David Morrison, a senior market analyst at Trade Nation.
On the flipside, luxury stocks gave up early gains and dropped 1.3 per cent, with Richemont falling 2.4 per cent despite the Cartier owner reporting an 11 per cent increase in third-quarter constant currency sales. Analysts pointed to broader profit-taking in the sector.
Macroeconomic data also added to the upbeat tone on Thursday. Germany’s economy grew for the first time in three years, data showed, propelled by greater government and consumer spending.
Among others, Repsol slid 6.3 per cent after RBC cut the Spanish energy firm to “underperform” from “sector perform”. Maersk fell 5.3 per cent after the Danish shipping giant said it will resume operations via the Red Sea and the Suez Canal for its MECL service that analysts say will ease container shipping demand. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
