FRANKFURT: European stocks closed higher on Wednesday, driven by heavyweight technology and industrial sectors, with markets seeming unfazed by tariff anxieties stirred by recent declarations from US President Donald Trump.
The pan-European STOXX 600 closed 0.4% higher, at highest level since Sept 2024. It hit a fresh record-peak during the session.
Heavyweight technology stocks led the charge, rising 1.3%, with technology stocks on Wall Street gaining on upbeat earnings.
Shares of Adidas jumped 6% after the German sportswear brand reported what it said were better-than-expected preliminary fourth-quarter results, with strong sales and profitability for the important holiday shopping period.
Germany’s benchmark index outperformed its regional peers, adding 1% to close at a record high.
Global equities received a lift as corporate earnings took the spotlight. Netflix dazzled investors by reaching an all-time high following its upbeat earnings report, which boosted market sentiment.
Despite Trump’s promises to levy new tariffs on the European Union and his threats to impose a 10% tariff on Chinese goods by February 1, the markets remained resilient.
Investors have been eagerly snapping up European stocks in recent weeks, attracted by their more appealing valuations compared to the pricey tech-heavy offerings on Wall Street.
In a report published on Tuesday, Bank of America said European stocks saw their second largest allocation in a quarter of a century in January.
Eurozone bond yields have dipped over the past two sessions, providing a tailwind for the stock markets.
The STOXX 600 has climbed 4% since the year’s start, slightly overtaking the S&P 500’s 3.6% rise, suggesting that investor confidence in Europe is on the upswing.
“You’re seeing a renewed enthusiasm ... (Europe) may offer more resilience in an uncertain world and the unpredictable nature of Trump’s administration. Investors are in search for value in some the stock markets across Europe,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.
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