(Bloomberg) -- European stocks closed at a record high as they got a boost from a slate of upbeat corporate earnings, after concerns around technology valuations fueled global volatility in Monday’s session.
The Stoxx Europe 600 Index climbed 0.4% to 531.60 points by the close. Siemens Energy AG rallied 8% after reporting better-than-expected preliminary revenue and lifting its 2025 free-cash-flow forecast. SAP SE hit an all-time high as it reported cloud sales that slightly beat analysts’ expectations, before paring the gains.
American depository receipts of luxury giant LVMH tumbled 8% after the European cash trading close. The company reported fourth-quarter organic sales in its fashion and leather goods business that beat the average analyst estimate.
Retail and travel and leisure stocks outperformed, while miners were the biggest laggards. Investors are assessing comments from President Donald Trump that he wants to enact across-the-board tariffs that are “much bigger” than 2.5%.
European stocks had stalled after hitting an all-time peak last week, as the sudden rise to prominence of Chinese startup DeepSeek fanned questions around lofty valuations for artificial intelligence firms. Still, the European benchmark is outperforming the S&P 500 for a second straight month as its cheaper price-to-earnings ratio and limited exposure to AI attracts investors.
“Yesterday was a tough day for tech hardware and software, potentially setting the stage for a valuation correction. Despite this, we remain bullish on European equities, focusing on a consumer-led recovery rather than industrial growth,” said Panmure Liberum strategist Susana Cruz. “Given this outlook, we favor companies in the consumer products and services sector, including travel and leisure as well as financials and banks.”
Focus is also on the fourth-quarter reporting season. Firms comprising about 21% of the Stoxx Europe 600 Index’s market capitalization are scheduled to report in the week through Jan. 31.
Among other earnings-driven moves, Sartorius AG jumped 11% after it reported adjusted Ebitda for the full year that beat the average analyst estimate.
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