By Nikhil Sharma
(Reuters) – European shares extended gains to hit a record high on Wednesday, supported by stocks of beverage makers following Heineken’s strong earnings, while investors awaited key U.S. inflation data.
The pan-European STOXX 600 index was up 0.2%, as of 0930 GMT, after hitting a record close on Tuesday. Germany’s benchmark was up 0.3% at an all-time peak.
Heineken jumped 11.6% to its highest since 2023 after the brewer reported better-than-expected profit, launched a share buyback and forecasts further growth in operating profit of between 4% and 8% in 2025.
Its peers Anheuser-Busch InBev and Carlsberg also jumped 4.1% and 3.1%, respectively, while food and beverages index soared 1.4% to the top of STOXX 600.
Basic resources added 0.8%, while travel and leisure advanced 0.7%.
Dutch bank ABN AMRO jumped 7.7% to a five-year high after the company’s fourth-quarter results beat market expectations.
The stock boosted the index of European banks by 0.6%.
A majority of sub-sectors on the index logged gains. The oil and gas index, however, was a drag and lost 0.7% due to lower crude prices. [O/R]
Despite an uncertain global trade backdrop, the STOXX 600 has risen about 0.8% this year on tailwinds from solid earnings at European companies.
Nearly 59% of the 129 firms in the STOXX 600 that have posted earnings for the fourth quarter of 2024 have reported results exceeding analysts’ estimates, as per data compiled by LSEG.
LSEG forecasts show that European earnings growth this year is expected to accelerate significantly to 7.9% from just 1% last year and a 3.9% decline in 2023.
Investors awaited January U.S. consumer price data for clues on the Federal Reserve’s monetary policy outlook, followed by the second day of testimony by Fed Chair Jerome Powell before the U.S. Congress.
Investors also looked out for developments from U.S. President Donald Trump’s tariff announcements, with the latest being his plans for the reciprocal tariffs on every country that charges duties on U.S. imports.
Trump on Monday said he would introduce 25% tariffs on all steel and aluminium imports from March 12, a move which received condemnation from Mexico, Canada and the European Union.
“So now, everyone is waiting to hear what countermeasures the EU will propose. Until the details are clearer, equity prices are likely to remain frozen in place,” said Nic Puckrin, financial analyst, investor and founder of The Coin Bureau.
Barratt Redrow surged 6.1% after the British homebuilder forecasted annual earnings towards the upper end of market view and initiated a 100 million pound ($124.4 million) per annum share buyback.
(Reporting by Nikhil Sharma; Editing by Rashmi Aich and Mrigank Dhaniwala)
