Upbeat earnings from Hermès and industrial groups linked to data-centre demand pushed the STOXX 600 to new highs.
European shares extended gains to new highs by early afternoon on Thursday, as strong corporate earnings from luxury and industrial groups fuelled a broad rally across the region’s equity markets.
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The pan-European STOXX 600 was up about 0.5% to 624.67 points by midday, holding near the all-time high level as investors digested a heavy slate of earnings updates.
Major benchmarks also hovered near record levels, with France’s CAC 40 up more than 1.4% on the day and London’s FTSE 100 trading around a record intraday high near 10,535 points.
Luxury stocks were among the biggest drivers of gains, with the sector rising about 1.5%.
Shares in Hermès climbed to a near one-month high after the French fashion house reported stronger-than-expected quarterly sales, backed by robust demand in the United States and Japan.
The results helped lift sentiment across the high-end consumer segment, which has faced concerns over slowing growth in China and more cautious spending among middle-income shoppers.
AI-adjacent industries jump
Industrial companies linked to artificial intelligence and data-centred demand were another key pillar of the rally.
French electrical equipment maker Legrand jumped about 5.8% after reporting strong demand tied to data-centre projects.
German engineering giant Siemens also rose sharply, climbing more than 6% after raising its full-year profit outlook, citing strong orders linked to AI-driven automation and digital infrastructure.
Analysts say the surge in AI-related industrial stocks reflects expectations that global spending on data centres, automation and electrification, will continue to accelerate as companies invest heavily in artificial intelligence capacity.
Stronger-than-expected corporate earnings updates were seen as the main catalyst for the rally.
Broader market sentiment was also supported by a robust US jobs report, which eased concerns about a slowdown in the world’s largest economy and reinforced expectations that growth will remain steady.
