Global Market: European shares hit record high as tech rally, earnings lift sentiment

European shares climbed to a record high on Friday, supported by a global rebound in technology stocks and a strong corporate earnings season, as investors looked past a week dominated by central bank decisions and tensions in the Middle East, Reuters reported.

The pan-European STOXX 600 index rose 0.9% to 655.2 by 0712 GMT, putting the benchmark on course for its fourth consecutive month of gains. According to Reuters, improving risk appetite in global equity markets helped drive the advance.

Technology stocks led the rally, with the STOXX 600 technology index surging 2.2% as investors renewed interest in artificial intelligence-linked companies after weakness earlier in the week.


Among the top gainers, French semiconductor materials maker Soitec jumped 7.2%, Germany's Infineon Technologies rose 7%, while Dutch chip equipment giant ASML advanced 3.5%.

Investor sentiment also received support from lower crude oil prices. Brent crude slipped more than 1% to remain below $90 a barrel as increased supplies moving through a key maritime chokepoint eased concerns over potential disruptions, offsetting the absence of significant progress in the U.S.-Iran conflict.

Corporate earnings continued to shape market moves across Europe.

Melrose Industries fell 9.3%, making it the worst performer on the STOXX 600, after the GKN Aerospace owner said it expects additional costs of £25 million to £30 million in the second half of 2026 following an incident at its Garden Grove facility in California in May.

Meanwhile, French lender Credit Agricole gained 4.5% after reporting second-quarter earnings that exceeded market expectations, providing another boost to investor confidence.

The combination of stronger technology shares, easing oil prices and encouraging earnings results helped European equities extend their rally despite lingering geopolitical uncertainties and a busy week for global monetary policy.