European Stocks Close at Records

European stocks closed slightly higher on Thursday amid support from strong earnings reports and a rebound for the tech sector. The Euro STOXX 50 added 0.4% to 6,503 and the STOXX Europe 600 added 0.2% to 658, both at record highs. Deutsche Telekom surged 6.3% after delivering strong earnings, raising its guidance, and lifting its share buyback to $3.5 billion. On top of that, Hermes advanced 5.1% after receiving an upgrade from Berenberg. Meanwhile, ASML and Siemens Energy gained 2% each amid a rebound for companies with exposure to AI infrastructure in Europe. In the meantime, Rheinmetall fell 3.5% after it revised its outlook downwards, which reflected the impact of a German government order cancellation earlier this year. Also, Siemens dropped 4.5% as its quarterly results missed the upper range of estimates, even though the company reported record industrial profit and a record level of new orders.

European stocks traded higher on Thursday, with the STOXX 50 adding 0.4% and the STOXX 600 increasing 0.3%, extending gains for a fourth consecutive session and climbing to fresh record highs. Investors remained focused on the latest corporate earnings and guidance while continuing to monitor developments in the Middle East, amid growing optimism that the US and Iran could be nearing a deal. Merck gained 1.5% after raising its 2026 earnings guidance. Rheinmetall advanced 0.8%, with investors looking past the company's lower 2026 outlook, which reflected the impact of a German government order cancellation earlier this year. WPP soared more than 27% to top the STOXX 600 after the company said there were signs of improvement in its core creative and media businesses. Meanwhile, Siemens dropped more than 5% as its quarterly results disappointed investors despite the company reporting record industrial profit and a record level of new orders.

European equity markets were on track to open modestly higher on Thursday, with major regional indexes remaining near record levels despite continued volatility across global technology stocks. Sentiment was also supported by reports of a partial reopening of the Strait of Hormuz, which drove oil prices lower, easing inflation concerns and reducing expectations for additional interest rate hikes. Investors will also monitor a fresh batch of economic data, including Eurozone retail sales, German factory orders, and French employment figures. On the corporate side, earnings are due from major companies such as Siemens, Deutsche Telekom, Rheinmetall, Assicurazioni Generali, and Merck. In premarket trading, futures tied to the Euro Stoxx 50 and Stoxx 600 were both higher by around 0.2%.