STOXX 600 closes at near four-month high as markets shrug off concerns over tariffs Reuters
By Nikhil Sharma and Pranav Kashyap
(Reuters) – European shares closed higher on Wednesday, boosted by heavy technology and industrials sectors, and markets appeared unfazed by tariff fears stirred by recent remarks from U.S. President Donald Trump.
The pan-European stock market closed 0.4% higher, at its highest level since September 2024. It hit a new record high during the session.
Technology heavyweights () led the way, rising 1.3%, as tech stocks on Wall Street gained on upbeat earnings.
Shares of Adidas ( OTC: ) jumped 6% after the German sportswear brand reported what it said were better-than-expected preliminary results for the fourth quarter, 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 stocks rose as corporate earnings took center stage. Netflix (NASDAQ: ) dazzled investors by hitting an all-time high after an upbeat earnings report boosted market sentiment.
Despite Trump’s promises to impose new tariffs on the European Union and his threats to impose 10% tariffs on Chinese goods by February 1, markets remained resilient.
Investors have been eagerly buying European stocks in recent weeks, drawn by their more attractive valuations compared to expensive tech-heavy offerings on Wall Street.
In a report released Tuesday, Bank of America said European stocks saw their second-largest allocation in a quarter-century in January.
Eurozone bond yields have fallen over the past two sessions, creating a headwind for stock markets. [GVD/EUR]
The STOXX 600 has climbed 4% since the start of the year, slightly beating the 3.6% gain, suggesting that investor confidence in Europe is on the rise.
“You’re seeing renewed enthusiasm … (Europe) can offer more resilience in an uncertain world and the unpredictable nature of the Trump administration. Investors are looking for value in some equity markets across Europe,” said Susannah Streeter, head of money and markets at Hargreaves (LON:) Lansdowne.
On the macro-economic level, European shares were further boosted by signals of support from the European Central Bank’s policymakers. They rallied behind further interest rate cuts, signaling that a cut next week is all but guaranteed and that further easing measures are expected.
“The direction is very clear,” ECB President Christine Lagarde told CNBC in Davos about interest rates. “The speed we’ll see depends on the data, but a gradual movement is certainly something that comes to mind right now.”
On Thursday, investors will get a reading of France’s business confidence index, along with flash consumer confidence data for the eurozone.
Munich Re gained 4.1% after the world’s biggest reinsurer has room to further improve its 2025 record net profit target of 6 billion euros ($6.25 billion) over the coming years, its chief executive said.
Siemens (ETR: ) The energy rose 6.5% after the company expects a “big tailwind” from Donald Trump’s power strategy announcement of up to $500 billion in private sector investment to fund artificial intelligence infrastructure.
Barry Callebaut fell 8% after the chocolate maker and cocoa processor reported lower-than-expected first-quarter sales.
