European shares hit record highs on Thursday, with the pan-European STOXX 600 index rising 0.5% to an all-time peak, according to Investing.com. Germany's DAX rose 1.13% to a fresh record high. France's CAC 40 gained 0.8%, and London's FTSE 100 rose 0.3%.
The report attributes the gains to strong corporate earnings and the region's defensive composition, which it says has limited exposure to mega-cap technology and AI stocks.
Siemens shares rose 4% after the industrial group reported better-than-expected quarterly results and raised its medium-term growth targets. The report says strong demand for AI-related data centre equipment and rail contracts drove record orders. Burberry shares surged about 9% after the British luxury house said its adjusted operating profit more than tripled in the first half to £62 million.
Technology shares weighed on the broader market. European semiconductor and enterprise software stocks turned lower, tracking a 7.4% drop in Frankfurt-listed shares of Nvidia. The report says the decline followed growing market concern that Chief Executive Jensen Huang could be ousted from the company.
Britain's economy grew 0.7% in the third quarter of 2026, faster than the 0.5% expansion in the second quarter, according to the report. Sarah Coles, head of personal finance at AJ Bell, said: "This isn't stellar growth by any measure, but 'not as bad as it could have been' is starting to look like success."
The report says markets are awaiting updated Eurozone growth and inflation forecasts, which could inform the European Central Bank's policy outlook. A BusinessEurope survey, also cited in the report, found sentiment among European companies has improved since June, but concerns are growing about rising inflation and sovereign debt.