European Stocks Surge Amidst Corporate Earnings and Technology Gains

European stocks climbed to new heights on Wednesday, led by technology and industrial sectors despite tariff anxieties from U.S. President Trump. The STOXX 600 hit a record high, uplifted by strong earnings from major firms like Adidas and Netflix. Eurozone bond yields and European Central Bank signals further boosted market confidence.

European stocks surged to record highs on Wednesday, with key gains driven by robust technology and industrial sectors. Investors appeared unfazed by tariff concerns following U.S. President Donald Trump's recent remarks. The pan-European STOXX 600 index climbed 0.4%, reaching its highest level since September 2024, propelled by a fresh peak during the session.

Major technology stocks spearheaded the rally, with a 1.3% uptick, echoing their Wall Street counterparts buoyed by positive earnings. Adidas shares skyrocketed 6% after unveiling impressive preliminary fourth-quarter results, boosting its performance during the crucial holiday season. Germany's benchmark index notably outperformed others, adding 1% to close at a historic high.

Corporate earnings dominated market sentiment, with Netflix achieving an all-time high post its earnings report. Despite Trump's new tariff threats on the EU and 10% tariffs on Chinese goods, markets remained steady. Investors have favored European stocks for their attractive valuations compared to Wall Street, as indicated by a Bank of America report highlighting one of the largest allocations to European stocks in 25 years.

(With inputs from agencies.)