European shares climbed to a record following strong corporate earnings and lower energy prices, diverging from the selling in Asia and in United States futures. The STOXX 600 gained around 0.30 percent shortly after the open to reach a record high, while the Nasdaq Composite had surged 1.60 percent in the previous United States session.
Why it matters
The contrast with Asia was sharp. Japan Nikkei fell 0.71 percent on Thursday as Nvidia turmoil rattled technology stocks, and Nasdaq 100 futures slipped about 0.64 percent. Europe, with less exposure to the chipmakers at the centre of the storm, was able to climb while the AI trade fell.
Energy prices helped. Lower energy costs supported the earnings outlook for European companies, and the strong corporate results gave investors a reason to buy. The combination of cheaper energy and better earnings is the backdrop for the record, and it is a different story from the one playing out in the chip sector.
What happens next
The record also reflects how far Europe has come this year. The FTSE 100 closed up 0.78 percent at 10,835.47 in London, and the gains have been broad rather than concentrated in a single sector. That breadth is what separates the European rally from the narrow AI driven moves in the United States.
For now, Europe is the calm corner of a nervous market. Whether it stays that way will depend on whether the Nvidia turmoil stays contained to chips or spreads to the wider economy.
The record also reflects how far Europe has come this year. The FTSE 100 closed up 0.78 percent at 10,835.47 in London, and the gains have been broad rather than concentrated in a single sector. The VIX volatility gauge fell about 10 percent to 17.49, a sign that investors outside the chip sector are calmer than the headlines suggest. That breadth is what separates the European rally from the narrow AI driven moves in the United States, and it is why Europe is the calm corner of a nervous market for now. Whether it stays that way will depend on the United States open and the Producer Price Index due on Friday.
