European Stocks Hit New Record Highs, Consumer Sentiment Shows Mixed Signals
European stock indexes rose on Wednesday (February 25th), driven by easing market concerns about the potential for AI disruption and cautious optimism ahead of further clarity on the direction of US trade policy. This strengthening prompted investors to increase their exposure to riskier assets, albeit remaining selective.
The Euro STOXX 50 Index rose 0.9% to close at a record 6,172, while the STOXX Europe 600 gained 0.7% to a record 633. Market sentiment improved as selling pressure on technology stocks eased, having been dragged down by concerns that AI developments could disrupt business models and valuations in certain sectors.
Investors' focus now shifts to Nvidia's financial results, due later in the day, as the results are expected to provide new insights into the strength and sustainability of AI-related demand. Similarly, ASML—which has significant exposure to the AI supply chain—rose 2%. On the earnings front, HSBC jumped 7.6% after reporting stronger-than-expected 2025 results, helping to bolster sentiment in the financial sector.
On the macro front, household confidence data provided mixed signals: German consumer confidence weakened unexpectedly in March, while French sentiment improved in February. This mixed picture reminds the market that, despite the record-setting index, its future direction remains sensitive to the combination of earnings, domestic demand data, and global trade policy developments.
Source: Newsmaker.id
