Europe’s STOXX 600 hits record high on strong earnings, easing Mideast tensions

Nov 12 (Reuters) – Europe’s benchmark STOXX 600 hit a record high on Thursday, boosted by strong corporate earnings, easing geopolitical tensions ​and investors rotating out of AI-linked ‌stocks in Asia and the US. The pan-European STOXX 600 gained 0.3% to 665.38 points by 0806 GMT, after closing at record levels in the previous session. Equity benchmarks ‌in ​most major regional markets were ⁠also higher, with Germany’s ⁠DAX rising 1% to a new high. Strong corporate earnings despite pressure from energy-driven inflation and expectations for higher interest rates have supported ​European equities in recent months. STOXX 600 companies are on track to post quarterly profit growth ⁠of 25%, the strongest ⁠in four years, according to LSEG-compiled data, ​with energy companies providing a major boost. Siemens rose 3.8% ​after the industrial technology group raised its growth ‌outlook, while Merck gained 1.6% after the drugmaker increased its 2026 profit guidance for a third time this year. Investors were also relieved by ⁠lower oil prices, a key import cost for Europe, that slipped below $100 a barrel after the US said ⁠no imminent ‌attacks on Iran were likely. The region’s ⁠smaller exposure to AI-linked stocks has ​also ‌helped it outperform Asian and US ​peers at ⁠a time when traders scrutinize the AI trade. The STOXX 600 has risen 4.7% so far this quarter, while the S&P 500 is down 0.4%. (Reporting by Johann M Cherian and Anjana Jayakrishnan Nair ​in Bengaluru)