European stocks pushed to a fresh record on Thursday, lifted by hopes for a U.S.-Iran peace deal, progress toward reopening the Strait of Hormuz, and a strong earnings season. The STOXX 600 extended two straight sessions of record closes, with Deutsche Telekom and Glanbia leading individual gains after results.
STOXX 600 extends record run
The pan-European STOXX 600 index rose 0.4% to 660 as of 0718 GMT on Thursday, building on record closes in the previous two sessions. Investors weighed prospects of a U.S.-Iran peace deal and progress toward reopening the Strait of Hormuz against a fresh batch of corporate earnings.
Iran-Oman deal raises Hormuz hopes
A senior Iranian source and two regional officials told Reuters that a proposed deal between Iran and Oman would give Tehran control over ships entering the Gulf through the Strait of Hormuz — one of the biggest concessions yet to Iran. The officials said the arrangement is meant to help end five months of war in the region.
Earnings season fuels the rally
Analysts have steadily raised profit forecasts during the reporting season. Second-quarter STOXX 600 earnings are now expected to rise nearly 21%, according to LSEG-compiled data, up from growth expectations of about 12.5% in early May.
Deutsche Telekom shares rose 5.5% after the German telecom operator expanded its 2026 share buyback programme by €3 billion ($3.5 billion) to up to €5 billion. The regional telecom sector also gained 1.6%.
The food and beverage sector edged 1% higher. Glanbia shares rose 8.4% after the Irish nutrition solutions provider's half-year revenue grew 7% year-on-year.
Tech stocks cool, retail sales in focus
Investors shrugged off a pullback in global technology stocks tied to a recent AI-driven rally. The STOXX 600 technology sector was up 0.1% on the day. Later in the session, traders were watching euro zone retail sales data for clues on the strength of consumer spending.
Source: Investing.com
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