Stoxx 600 rises 0.3% to 665.38 points, setting a new record
Key Facts
The European Stoxx 600 rose 0.3% to 665.38 points by 08:06 GMT on Thursday, Nov. 12, setting a new record after closing at record levels in the previous session, according to a Reuters report. The advance extended gains in European shares that the report linked to a strong third-quarter earnings season and the recent decline in energy prices. This put the index at a new intraday high in morning trading, without indicating that this level was the session’s close. In a separate report published at 08:04, Reuters said earnings growth among companies in the index accelerated from 22% to 28%, the strongest rate in four years, according to Deutsche Bank. The later report at 08:06 cited data compiled by LSEG showing companies on track for quarterly earnings growth of 25% in the third quarter, the strongest in four years.
The estimates in the two Reuters reports reflect different readings of the earnings season: growth accelerating from 22% to 28% in Deutsche Bank data, and forecast quarterly growth of 25% in LSEG data. The later report linked earnings performance to significant support from energy companies, broadening the explanation for the advance beyond moves in individual shares. LSEG said index companies were “on track to deliver quarterly earnings growth of 25%,” the strongest growth in four years. The estimate adds to the backdrop for the index’s rise, combining expected earnings growth with falling energy prices. The comparison remained dependent on the timing of each report and the source of the figures cited.
In energy markets, Brent crude was trading near $93 a barrel on Nov. 12, below its recent highs, according to a Reuters report published at 08:04. The report said European gas prices had also fallen as flows from the Gulf increased, alongside a decline in traders’ concern about a possible renewed escalation of the conflict. Reuters linked lower energy prices to support for European shares, without specifying the extent of the decline in gas or providing a previous level for comparison. These developments joined the strong earnings season as factors supporting the index. The session’s backdrop thus brought together corporate earnings indicators, falling energy prices and reduced concern about escalation.
The advance extended to the region’s main markets, with Germany’s DAX rising 1% to a new record by 08:06 GMT, according to Reuters. Siemens shares rose 3.8% after the company raised its growth outlook, while Merck gained 1.6% after raising its 2026 earnings guidance for the third time this year. The two share moves illustrate the market’s response to company updates, while the DAX’s performance added to the positive picture for German shares in trading. In a statement issued on Nov. 12, Siemens raised its medium-term target for comparable revenue growth to a range of 7%–11% from 6%–9% previously. It also said comparable revenue for fiscal 2026 grew 8% to 83.4 billion euros, compared with 78.9 billion euros in the previous fiscal year.
For the quarter to that date, the Stoxx 600 rose 4.7%, while the S&P 500 fell 0.4%, according to Reuters. The comparison places European shares on a stronger track than their U.S. counterparts since the start of the quarter, with the figures covering the period through publication of the Nov. 12 report. The previous session had set the stage for the new high: on Nov. 11, the index closed up 0.72% at 663.05 points, below its intraday peak of 663.41 points. That day, Siemens Energy shares rose 6.5% by 08:07 GMT amid expectations of higher profit margins in 2027, and the company announced plans to increase dividends to more than three times their level. These figures provide dated context for the Nov. 11 session, while the index reached a new record in subsequent trading.
On the monetary policy outlook, a Reuters report dated Nov. 11 said traders were expecting at least one quarter-point interest-rate increase from the European Central Bank by February 2027. This provides context for market expectations on the rate path, alongside attention to corporate earnings and energy prices. Markets were also looking to updated euro-area economic forecasts to assess growth and inflation indicators and what they might reveal about the European Central Bank’s path in 2027, according to Investing.com. At the company level, Siemens forecast comparable group revenue growth of between 9% and 11% for fiscal 2027, and basic earnings per share before purchase price allocation accounting of between 10.20 and 10.80 euros. These forecasts and forthcoming economic data remain part of the context markets are tracking after the index set a new record.