Investors are also considering President Donald Trump's comments on potential tariffs and the impact of Chinese startup DeepSeek on AI valuations. The European benchmark is outperforming the S&P 500 for the second consecutive month, attracting investors with its lower price-to-earnings ratio and limited AI exposure. Panmure Liberum strategist Susana Cruz remains optimistic about European equities, focusing on a consumer-led recovery. The fourth-quarter reporting season is in focus, with companies representing 21% of the Stoxx Europe 600 Index's market capitalization set to report soon. Sartorius AG saw an 11% increase after reporting better-than-expected adjusted Ebitda for the full year.
Key takeaways:
- European stocks closed at a record high, boosted by upbeat corporate earnings despite global volatility concerns.
- Siemens Energy AG and SAP SE were notable performers, with Siemens rallying 8% and SAP hitting an all-time high.
- Luxury giant LVMH's American depository receipts fell 8% after reporting better-than-expected sales in fashion and leather goods.
- Investors are focusing on a consumer-led recovery in European equities, favoring sectors like consumer products, travel, leisure, financials, and banks.