AI Stocks Drive European Markets to Record Highs
European stock markets hit fresh record highs during Tuesday's trading session. The Euro Stoxx 50 index rose 0.7% to reach the 6,480 level, while the STOXX 600 gained 0.6%, bolstered by improving global risk sentiment and relatively solid corporate earnings reports.
The technology sector led the gains after strong performance from Palantir reignited optimism regarding the artificial intelligence business. The US software company posted better-than-expected results and raised its revenue forecast. Shares of BE Semiconductor also climbed 2% following an upgrade from Berenberg.
However, individual stock movements were mixed. Lufthansa fell 4% after its operating profit missed estimates and the company lowered its performance outlook. Zalando shares plunged 9% after the company cut its growth targets and full-year profit guidance.
In the UK, BP shares rose 1% after reporting stronger-than-expected profits. HSBC also edged up 0.3% after posting better-than-expected results and raising its net interest income target.
Newsmaker Analysis: The European market rally continues to be supported by AI euphoria and corporate performance, though the recovery in oil prices and uncertainty surrounding the US-Iran conflict remain risks. As long as major corporate earnings remain strong, European indices have the potential to maintain their upward trend, although high valuations could trigger profit-taking. (gn)
Source: Newsmaker.id
