Key facts
- European shares reached a record high for the third consecutive day.
- Major indexes in Spain, France, and Italy also closed at record levels.
- The pan-European STOXX 600 index rose 0.2% to 658.19 points.
- Second-quarter STOXX 600 earnings are projected to increase by nearly 21%.
- Deutsche Telekom announced an expansion of its share buyback program by €3 billion.
- WPP shares saw their largest daily gain since 1992, rising 28.6%.
European shares concluded Thursday at a record high for the third consecutive trading session, driven by a combination of resilient corporate earnings and optimism surrounding a potential U.S.-Iran peace deal. The pan-European STOXX 600 index gained 0.2% to close at 658.19 points, reaching an intraday high of 660.91. Major stock indexes in Spain, France, and Italy also achieved record closing levels.
Investors appear to be looking past geopolitical risks, with the prospect of de-escalation in the Middle East bolstering risk appetite. Analysts have revised profit forecasts upward throughout the earnings season, with second-quarter STOXX 600 earnings now anticipated to rise by nearly 21%, a significant increase from earlier expectations. This robust earnings environment, coupled with resilient economic data from the Eurozone, is contributing to positive investor sentiment.
Several companies reported notable movements. Deutsche Telekom's shares rose 6.3% after the company announced an expansion of its share buyback program by €3 billion to €5 billion. The advertising group WPP saw its shares jump 28.6%, its largest daily gain since 1992, following better-than-expected organic growth and confirmation that business stabilization plans are on track. Renk's stock increased by 5.8% after reporting a surge in second-quarter orders that exceeded analyst estimates. Conversely, Rheinmetall's shares fell 3.5% after it revised its 2026 sales outlook downward. Siemens closed 4.5% lower due to its digital industries division missing expectations, despite the company reporting its highest-ever quarterly industrial profit and raising its full-year guidance. Hikma Pharmaceuticals shares climbed 8.2% after reporting a 9% increase in half-year core operating profit and maintaining its annual outlook.