FRANKFURT: European shares closed at a record high on Friday, led by technology stocks, as earnings from companies such as Novartis and Hexagon overshadowed concerns over economic recovery.
The pan-European STOXX 600 index closed up 0.13% as technology led sectoral gains with a 1.7% rise.
Industrial technology group Hexagon provided the tech sector with the biggest boost. It gained 8.9% after posting a surprise rise in fourth-quarter operating profit.
Computer chip equipment maker ASML also rose 2.3%, sustaining gains after its robust earnings report on Wednesday.
Healthcare added 0.4%, with Novartis up 1.9%, after the company posted quarterly adjusted net income that exceeded expectations following strong sales of its heart failure drug Entresto and multiple sclerosis drug Kesimpta.
The benchmark STOXX index was on track for its fourth consecutive session of record gains, as well as a sixth straight weekly rise, its longest such streak since March 2024.
Equities overcame Monday’s global market rout triggered by Chinese firm DeepSeek’s low-cost AI model, while signs that the European Central Bank could cut rates again in March against the backdrop of weak economic growth aided some risk-taking.
Traders see about 79 basis points worth of rate cuts this year, according to LSEG data.
Investors were unsettled ahead of US President Donald Trump’s Feb. 1 deadline for imposing tariffs. Trump has threatened the European Union with import duties, but has offered little clarity.
Steve Sosnick, chief market analyst at Interactive Brokers, said the export-focused nature of European companies had helped them this month.
“Number one the stronger dollar helped (earnings),” he said, adding the rally had also been spurred by relief Europe is not the only target of Trump administration tariffs.
Electrolux, however, which warned of the impact of uncertainty in the North American market in the event of US tariffs in the previous session, sank to the bottom of the STOXX index.
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