STOXX 600 Hits All-Time High Thanks to Gains in the Tech Sector

The trading session in Europe is characterised by record highs on the main indices and a stabilisation in sentiment towards technology companies following the recent turmoil surrounding AI trading. The STOXX 600 has hit an all-time high, rising by around 0.4–0.6%, supported by the technology sector (+1.7%) and a strong quarterly earnings season; Wall Street futures are also rising, with Nasdaq futures up 0.67%, reflecting a return of demand for US big tech companies.

The main factor driving the market is the stabilisation of the situation surrounding chips following the recent sell-off in Asia, where investors attribute the recent falls mainly to leveraged trading rather than genuine concerns about AI spending; at the same time, geopolitical uncertainty surrounding the US-Iran conflict continues to weigh on sentiment, despite Donald Trump’s reports of ongoing talks, which Tehran denies. Brent crude is rebounding following Monday’s slump of more than 7 per cent, gaining around 1.4–2.8 per cent and returning to around US$85 a barrel, as the lack of a diplomatic breakthrough on Iran continues to pose a risk to supplies from the Middle East. The US dollar remains on the back foot, with the dollar index near its lowest levels in two months (around 99.98–100 points), following a sell-off triggered by joint US-Japan intervention in the yen and a fall in oil prices last week; the yen, meanwhile, is weakening slightly towards 158 to the dollar, but is still holding on to most of the gains made from the intervention.

Among the sectors, technology is performing best, with ASML up by over 2 per cent and Infineon and Rheinmetall posting solid gains, as are the financial and industrial sectors, including Siemens Energy and Schneider Electric. Discretionary consumption is performing the worst, with LVMH and Hermès down by over 2 per cent and Adidas falling by over 3 per cent; the travel and retail sectors are also under pressure following weak forecasts from some companies.

Company Information

The day’s key movements relate to quarterly results and changes to forecasts at several major European companies.

• BP’s shares are rising after its second-quarter profit more than doubled to US$5.73 billion, beating analysts’ forecasts thanks to higher energy prices, trading margins and refining margins; the company also raised its dividend by 4 per cent to 8.66 cents per share and announced plans to sell its US biogas business, Archaea.
• Bayer shares are up by more than 2–3 per cent following an unexpected 1.9 per cent rise in adjusted EBITDA to €2.14 billion, driven by a strong rebound in sales of dicamba-related sowing technology, whilst the company also lowered its net debt forecast for 2026 to €29–30 billion.
• Zalando is the biggest faller on the STOXX 600 index, losing over ten per cent after revising down its revenue and growth forecasts for 2026 to the lower end of its previous range.
• Lufthansa’s share price has fallen sharply following a warning that its full-year operating profit could decline, after its second-quarter profit more than halved due to higher fuel costs linked to the US-Iran conflict.
• Hugo Boss reported an operating profit for the second quarter that exceeded forecasts (€59 million compared with the expected €52 million) and maintained its full-year forecasts, despite weak consumer demand in the EMEA region, where sales fell by 13 per cent.
• Segro’s shares are rising following the acceptance of a takeover bid by US-based Prologis worth up to £14.3 billion, whilst Travis Perkins’ shares have jumped by 18 per cent following better results for the first half of the year.

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