05/11/2026
European stocks extended their strong run and broke previous closing record highs, fueled by capital rotation in AI trades and a robust earnings season across the region.
The Stoxx Europe 600 briefly topped its August peak in early trade before paring gains. At 1:01 p.m. London time, the pan-European benchmark rose 0.5%, led higher by mining shares. The index had rallied sharply on Wednesday after Democrats secured strong gains in the midterm elections, lifting broad risk appetite.
Tecan Group AG, Endeavour Mining Plc and Auto1 Group SE were among the biggest contributors to the index’s advance, while Rheinmetall AG slumped. The German defense giant cut its 2026 sales targets for the second time on Thursday, citing delays to its Boxer armored vehicle programme, sending its shares down as much as 18%.
Since early October, the pan-European benchmark has outperformed the MSCI All Country World Index and is on track for its best quarterly relative performance since the first quarter of 2025. Europe has benefited from profit-taking on AI positions, pushing investors into defensive sectors including healthcare and staples.
AP Moller-Maersk A/S was among the notable laggards on Thursday. The shipping group raised its earnings guidance, yet the upgrade fell short of investors’ elevated expectations. Precious metals miners stood out as top performers, including Endeavour Mining Plc and Pan African Resources Plc, as gold extended Wednesday’s rally.
So far this reporting cycle, European earnings have beaten estimates. Data points to more than 32% profit growth for MSCI Europe Index constituents in the third quarter, the fastest pace since early 2022.
Investor focus now turns to how midterm election outcomes may shape the Iran conflict, tariff settings and the outlook for U.S. policy shifts. Potential policy changes could boost renewable energy development while posing risks to AI-related trade.
[Disclaimer] Forex trading involves risk; please invest with caution. This content is for informational purposes and objective analysis only, and does not constitute any investment advice, basis for buying/selling, or guarantee of returns. Investors should make independent decisions based on their own financial situation and risk tolerance, and bear their own investment risks.
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