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European stocks surged to a record high on Thursday, driven by strong earnings from Nestlé and growing market optimism over potential peace talks between the United States and Russia regarding the ongoing war in Ukraine.
As of 08:13 GMT, the pan-European STOXX 600 index gained 0.5%, extending its record-breaking rally for the sixth consecutive session. Germany’s benchmark DAX and the broader EURO STOXX index also reached all-time highs, rising 1% and 0.9%, respectively, in early trading. Meanwhile, France’s CAC 40 climbed 1%, reaching its highest level since May.
Optimism Over Peace Talks Boosts Sentiment
Investor confidence was lifted after U.S. President Donald Trump revealed that both Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy had expressed a willingness to negotiate peace during separate phone calls. Trump subsequently ordered top U.S. officials to initiate talks, fueling optimism that the nearly three-year-long conflict could be approaching a resolution.
The news also bolstered the euro, which jumped 0.35% to $1.0419 as markets reacted to the prospect of reduced geopolitical uncertainty.
Nestlé Earnings Propel Food & Beverage Stocks
Nestlé shares surged 6.5% after the company reported slightly better-than-expected annual sales growth, boosting the broader food and beverages sector by 2.7%. The Swiss multinational, known for its Nescafé coffee and KitKat chocolate bars, played a key role in the market’s rally.
Strong Corporate Earnings Drive Market Gains
The automotive sector also posted significant gains, rising 2.6% following a 5.3% jump in Michelin shares. The French tire manufacturer reported strong full-year results, exceeding market expectations.
Similarly, German engineering giant Siemens saw its stock climb 5.4% after reporting better-than-expected quarterly profits, further reinforcing positive sentiment across European markets.
With robust corporate earnings and improving geopolitical outlooks, European markets remain on a strong upward trajectory, with investors closely watching developments in peace negotiations and upcoming economic data.
