By Nikhil Sharma
(Reuters) – European stocks jumped to a record high on Wednesday powered by heavyweight technology and healthcare stocks, with markets appearing to ignore tariff fears triggered by fresh threats from U.S. President Donald Trump.
The pan-European STOXX 600 was up 0.6%, as of 1010 GMT, eclipsing the record high last hit on Sept. 27, 2024.
Heavyweight healthcare stocks led the charge, rising 1%, boosted by a 2.3% uptick in drugmaker Novo Nordisk.
Shares of Adidas jumped 6.3% after the German sportswear brand reported what it said were better-than-expected preliminary fourth-quarter results, with strong sales and profitability for the important holiday shopping period.
Germany’s benchmark index outperformed its regional peers, adding 1.1% to touch a record peak.
Equities around the globe received a boost after Trump announced a storm of new policies, together with robust earnings from corporate giants like Netflix, lifting investor sentiment.
Markets appeared to shrug off Trump’s pledge to hit the European Union with fresh levies and threat to impose a 10% tariff on goods from China on Feb. 1.
“There’s still no clarity on exactly what the tariff plan is. So, there’s an element of markets having braced themselves for very bad news and not received it yet,” said Russ Mould, investment director at AJ Bell.
Investors have been active buyers of European equities in recent weeks, as valuations have tumbled related to the United States and many have sought an alternative to Wall Street’s expensive tech-heavy market.
In a report published on Tuesday, Bank of America said European stocks saw their second largest allocation in a quarter of a century in January.
Meanwhile, European Central Bank policymakers lined up behind further interest rate cuts, indicating that next week’s reduction is all but a done deal and further moves will also come.
“The direction is very clear,” ECB President Christine Lagarde told CNBC in Davos about interest rates. “The pace we shall see depends on data, but gradual move is certainly something that comes to mind at the moment.”
In other stocks, Schaeffler tumbled 12.4% after the German automotive supplier reported lower-than-expected preliminary results for 2024.
British airline easyJet slid 2.7% after the company flagged weaker revenue expectations for the second quarter, but the airline cut losses in the first quarter and kept its profit guidance for the year.
(Reporting by Nikhil Sharma in Bengaluru; Editing by Sherry Jacob-Phillips and Eileen Soreng)
