EU stocks near record highs as strong earnings lift market sentiment
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European shares edged close to all-time highs on Thursday, as a wave of upbeat corporate earnings provided support, while investors awaited the Bank of England’s interest rate decision. The pan-European STOXX 600 index rose 0.5%, extending its recent rally and trading near its record peak from January 31.
Earnings Drive Market Optimism
The healthcare sector led the gains, with AstraZeneca surging 3.2% after its fourth-quarter revenue exceeded expectations and the company provided a strong sales forecast for 2025. The positive results also boosted Britain’s FTSE 100, which climbed 0.8%. Basic resources stocks outperformed, with Europe’s largest copper producer, Aurubis, rallying 4.3% after posting first-quarter pre-tax profit above market expectations. Shipping giant Maersk saw a significant jump of 7.5%, following strong Q4 earnings that exceeded analyst estimates.
BoE Decision in Focus
Investors are closely watching the Bank of England’s monetary policy decision, with expectations that the central bank will lower interest rates from 4.75% to 4.5%. Policymakers are looking to stimulate Britain’s sluggish economy while balancing persistent inflationary pressures.
Key Data Releases and Market Outlook
On the economic front, investors await January's eurozone retail sales data, alongside the HCOB Construction PMI, which could provide further insight into the region’s economic momentum. With corporate earnings season continuing to set the tone, European markets appear poised for further upside, provided economic data and central bank decisions align with investor expectations.
Earnings Drive Market Optimism
The healthcare sector led the gains, with AstraZeneca surging 3.2% after its fourth-quarter revenue exceeded expectations and the company provided a strong sales forecast for 2025. The positive results also boosted Britain’s FTSE 100, which climbed 0.8%. Basic resources stocks outperformed, with Europe’s largest copper producer, Aurubis, rallying 4.3% after posting first-quarter pre-tax profit above market expectations. Shipping giant Maersk saw a significant jump of 7.5%, following strong Q4 earnings that exceeded analyst estimates.
BoE Decision in Focus
Investors are closely watching the Bank of England’s monetary policy decision, with expectations that the central bank will lower interest rates from 4.75% to 4.5%. Policymakers are looking to stimulate Britain’s sluggish economy while balancing persistent inflationary pressures.
Key Data Releases and Market Outlook
On the economic front, investors await January's eurozone retail sales data, alongside the HCOB Construction PMI, which could provide further insight into the region’s economic momentum. With corporate earnings season continuing to set the tone, European markets appear poised for further upside, provided economic data and central bank decisions align with investor expectations.