Regional equities surge as corporate results and reduced Middle East tensions offset mixed economic data.
European shares climbed to record levels, driven by robust corporate earnings and easing geopolitical risks in the Middle East. The pan-European STOXX 600 index gained 0.3%, with France’s CAC 40 leading advances at 0.69%. Germany’s DAX dipped 0.13% despite a 3.1% month-on-month rise in June factory orders, exceeding expectations.
The S&P Global France Construction PMI improved to 41.5 in July from 38.2 in June, signaling a slower contraction in the sector. Eurozone construction activity also showed signs of stabilization, though remaining below the 50-mark separating growth from contraction.
Investors largely shrugged off mixed economic signals, focusing instead on positive earnings reports and a more stable geopolitical outlook. The gains extend a rally fueled by expectations of monetary easing later this year.