European Stocks Near Record as AI Earnings Outweigh Rate-Hike Risk
(MENAFN- MENAFNEditorial)
European stocks rose towards a record on Wednesday as strong results revived confidence. Siemens Energy raised its 2027 margin expectations and plans to more than triple its dividend, lifting electrification peers Schneider Electric and Legrand. Infineon expects fiscal 2027 revenue to grow by more than 20%. C’reWeave’s forecast of adjusted profitability in the first half of 2028 eased the AI bubble fears.
However, expectations of further ECB tightening, alongside renewed Fed hike bets after hot US inflation data, could support yields globally, while fiscal tensions in France and protests in Spain add to political uncertainty in Europe.
At the same time, in the Middle East, oil prices rebounded as markets await further developments around the Strait of Hormuz, where incidents continue. Nevertheless, crude remains near two-month lows. Diplomatic progress could weigh on oil, ease inflation concerns and support risk assets.
Looking ’head, Friday’s US producer price data could shape expectations for a larger Fed hike in December. A firm reading could lift yields and test the rally, while a softer figure may support the advance in stocks.
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept any
responsibility or liability for the accuracy, content, images, videos,
licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright issues
related to this article, kindly contact the provider above.
Comments
No comment