European Stocks Poised for Strong Open

The STOXX 50 gained 1.1% and the STOXX 600 advanced 0.9% to hit record levels on Friday, tracking a global rally in technology shares as investors renewed their enthusiasm for AI-related stocks. Fresh corporate earnings and lower oil prices also supported market sentiment. ASML climbed 3.4%, Infineon surged 6.8%, STMicroelectronics went up 4.1% and Siemens Energy gained 3.6%. NatWest rose 3.8% after reporting a stronger-than-expected 29% increase in pre-tax profit, while Saint-Gobain advanced 4.8% after posting an acceleration in second-quarter sales growth. Engie added 4.2% after posting a 3.3% rise in earnings and Credit Agricole rose 3.6% after reporting higher profit for Q2. Worldline soared nearly 19% after its earnings report. In contrast, Vivendi plunged more than 13% to bottom the STOXX 600. On the week, the STOXX 50 is up 1%, while the STOXX 600 has gained 0.9%. For July, the STOXX 50 has risen 0.2%, while the STOXX 600 has advanced 1.3%.

European equity markets were set to open higher on Friday, building on the previous session’s gains as sentiment improved amid a global rally in technology stocks and renewed optimism surrounding the artificial intelligence sector. Semiconductor shares in the US and Asia led the advance, with strong earnings from Microsoft and Amazon reinforcing confidence in continued hyperscaler investment and resilient AI-driven demand. In Europe, investors will focus on July inflation data from the Eurozone, France, and Italy, along with Germany’s latest unemployment figures. On the corporate front, earnings reports are due from Linde, Enel, AXA, ENGIE, and NatWest, among others. In premarket trading, futures for both the Euro Stoxx 50 and the Stoxx 600 were up around 0.8%.

European stocks closed sharply higher on Thursday amid strong GDP data and favorable corporate results. The Euro STOXX 50 rose 1.3% to 6,333 and the STOXX Europe 600 gained 0.6% to 649. The Eurozone GDP expanded by 0.4% in the second quarter, firmly above market expectations of 0.2% to reflect some resilience to soaring energy prices and sovereign yields in the period. Still, economic optimism was buffered by elevated EU-harmonized inflation rates, with pickups across Spain and Germany. Schneider Electric surged 10.8% after raising its full-year targets. BBVA climbed 5% after reporting an 11.4% increase in net profit. Also, ING rose more than 5% after posing their results, lifting other banks. On top of that, L'Oreal rose 2.7% after its earnings grew more than expected, and Ferrari maintained its slight gains after raising its guidance. On the downside, Adidas slumped 13.8% after its heavy marketing campaign around the FIFA World Cup triggered a surge in outlays.