European Shares Extend Record Run as Investors Shift From AI
Mining and consumer goods stocks led gains as lower oil prices, election-driven risk appetite and earnings expectations supported European shares.
Key takeaways
- The Stoxx Europe 600 tested above its August closing peak.
- Bloomberg Intelligence expects third-quarter earnings growth above 32% for the MSCI Europe Index.
European shares extended their gains to a record, with the Stoxx Europe 600 testing above its August closing high. Mining and consumer goods stocks led the advance.
Investors’ shift from AI-related shares toward defensive sectors such as health care and consumer staples has helped Europe outperform global equities, according to the reports. Lower oil prices, which fell below $100 a barrel, and increased risk appetite after the U.S. midterm elections also supported shares.
Bloomberg Intelligence data point to expected third-quarter earnings growth of more than 32% for the MSCI Europe Index, which would be its strongest performance since early 2022.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
