European Stocks Close at Record; Puma Sinks on Glum Earnings

(Bloomberg) — European stocks closed at a record high, as corporate earnings kicked into high gear.

The Stoxx Europe 600 Index gained 0.4% to close at 530.34, notching an all-time closing high. EQT AB rallied the most since 2023 after the Swedish private equity group reported increased exit activity and said private markets returned to their long-term growth trajectory. Swedbank AB shares hit a record level as the firm reported better-than-expected profit from lending. 

Meanwhile, Puma plunged 23%, the most on record, as the German sportswear company’s earnings missed analyst estimates. Primark-owner Associated British Foods Plc dropped as it cut its guidance for sales growth at the discount fashion retailer, blaming weak UK consumer sentiment. 

Europe’s benchmark index has marked an upbeat start to the year as investors bet that US President Donald Trump could take a softer-than-feared stance on tariffs. Still, there are signs the rally could be overheating as a larger share of Stoxx 600 constituents is gaining ground, posing challenges to further gains.

“We expect earnings growth to be the key driver of returns rather than a re-rating, given our outlook for steady to rising bond yields,” said Panmure Liberum strategist Susana Cruz. “Positive surprises in the coming season should give a boost to sectors where sentiment is shifting, like travel, leisure, and financials.”

She added that the bar for better-than-expected results was higher for tech, mining and chemicals stocks.

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–With assistance from Michael Msika.

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