Key facts
- European shares, tracked by the STOXX 600 index, reached a record high.
- Technology stocks led the gains, with AI-linked companies seeing improved demand.
- Positive corporate earnings reports also contributed to the market's rise.
- Oil prices declined, with Brent crude falling below $90 per barrel.
- Melrose Industries experienced a significant drop following a cost forecast.
- Credit Agricole's shares rose after reporting strong second-quarter results.
European shares achieved a record high on Friday, propelled by a global resurgence in investor appetite for technology stocks and bolstered by corporate earnings reports throughout the week. The pan-European STOXX 600 index climbed 0.9% to 655.2 by 0712 GMT, marking its fourth consecutive month of gains.
Technology stocks within the STOXX 600 surged by 2.2%, mirroring gains in Asian markets as demand for AI-linked equities improved. Specific companies like Soitec saw a 7.2% increase, Infineon Technologies rose 7%, and ASML advanced 3.5%.
The market was also supported by a dip in oil prices, with Brent crude contained below $90 a barrel, as increased supply through a key chokepoint offset concerns over the U.S.-Iran conflict.
Corporate earnings played a significant role, with Melrose Industries dropping 9.3% to the bottom of the STOXX 600 after announcing expected additional costs of £25 million to £30 million ($33.6 million to $40.3 million) in the latter half of 2026 due to an incident at its California facility. Conversely, Credit Agricole gained 4.5% after reporting second-quarter earnings that surpassed expectations.