European equities advanced to new record highs on Tuesday, buoyed by robust corporate earnings, strength in AI-linked names, and an improvement in global risk appetite. The Euro Stoxx 50 climbed 1% to 6,490, while the STOXX 600 added 0.7% to reach 657. A steep decline in oil prices—driven by optimism surrounding peace negotiations in the Middle East—provided additional support by easing inflation worries and dampening expectations of further monetary tightening.
AI-related stocks were among the top performers after Palantir raised its revenue guidance. BE Semiconductor surged 7.6% following an upgrade from Berenberg, while ASML and Infineon advanced 3.4% and 3.2%, respectively. In earnings-driven moves, Bayer gained 2.9% after beating quarterly forecasts. By contrast, BP dropped 4.6% as weaker oil prices outweighed stronger-than-expected results, and HSBC edged 0.2% lower despite posting solid earnings.
On the downside, Zalando sank 11.7% after cutting its full-year outlook. Lufthansa fell 9% following a guidance downgrade, and Hugo Boss was broadly unchanged even as it reported sharp declines in both sales and EBIT.
