European Stocks Hit New Record on US-Russia Talks, Earnings
European stock advanced to a fresh record high amid optimism that talks between the US and Russia will lead to an end to the war in Ukraine, and after good earnings from companies including Nestle SA and Siemens AG.
The Stoxx 600 Europe Index gained 0.5% at 8:15 a.m in London. The gains came after President Donald Trump agreed in a phone call with Russian President Vladimir Putin to start negotiating an end to the war in Ukraine.
Among single stocks, Nestle jumped after fourth quarter revenue growth beat estimates, while Siemens shares advanced after its quarterly revenue rose due to robust demand for its electrification products.
Investors are also assessing Wednesday’s consumer price data in the US, which showed that inflation grew by more than anticipated at the start of the year. Federal Reserve Chair Jerome Powell said there is still more work to do to reduce inflation.
“The increasingly concrete negotiations about the end of the conflict in Ukraine are fueling the markets. It is still too early to speak of a turnaround, but it is the first step towards a hopefully soon normalization of economic relations. Many more steps will be necessary,” said Guillermo Hernandez Sampere, head of trading at asset manager MPPM.
Europe’s main regional index is trading at record levels as strong earnings are fueling positive sentiment toward equities. Still, investors are looking for further catalysts as trade tensions with the US continue to weigh on sentiment.
Among other companies reporting today, Barclays Plc dropped after its results.
Source: Bloomberg
