European shares edged toward record highs as corporate earnings lifted risk appetite, with the pan-European STOXX 600 index rising 0.4% in morning trading and trading near the record high reached over the weekend.
Germany's DAX and France's CAC 40 each rose 0.6%, the UK's FTSE 100 gained 0.5%, and Italy's FTSE MIB added 0.7% on Tuesday, supported by corporate earnings.
0.4% rise
The pan-European STOXX 600 index rose 0.4% in morning trading.
HSBC and Bayer reported financial results above expectations, increasing investor appetite and helping European regional stocks set to scale fresh peaks. Analysts are turning even more optimistic about a broad range of European sectors.
Analysts said strong second-quarter earnings and lower energy prices continued to support European stocks, while macroeconomic uncertainties had only a limited impact on pricing.
However, the consumer sector showed a weaker picture. Nivea maker Beiersdorf cut its 2026 sales forecast due to weakening consumer demand, and its shares fell 1.1% after the forecast cut. Luxury fashion brand Salvatore Ferragamo fell 8.5% after its first-half financial results, becoming one of the day's biggest decliners.
Updates
European stocks scaled a record high at the close, with the pan-European STOXX 600 rising to 658.19 points from 656.86, marking a fourth consecutive day and week of gains, supported by stronger-than-expected earnings, rising manufacturing new orders in Germany (+3.1% MoM, +6.5% YoY), and optimism over US-Iran negotiations, while UK markets dipped slightly and euro/dollar parity edged down to 1.152 after earlier gains.
European stocks closed at a record high, with the pan-European STOXX 600 rising to 658.19 points — up from 656.86 in the prior close — as strong earnings and optimism over US-Iran negotiations fueled a fourth consecutive day and week of gains, while Germany’s manufacturing new orders beat forecasts with a 3.1% monthly and 6.5% yearly rise, though eurozone retail sales dipped 0.3% in June and the euro/dollar rate edged lower to 1.152 from its prior level.
European stocks surpassed their previous record, with the STOXX 600 closing at 658.19 points — up from 656.86 — and briefly exceeding 660 for the first time this week, driven by a stronger-than-expected earnings season and optimism over US-Iran negotiations, while Germany’s manufacturing new orders rose 3.1% month-on-month and 6.5% year-on-year, and the index has gained nearly 11% year-to-date, outperforming the US market by 0.5 percentage points over the past year.
