Europe close: Stoxx 600 near record; Renk and Telekom lift mood

(Sharecast News) - European stocks finished higher on Thursday, with the Stoxx 600 closing near fresh record highs as investors continued to weigh resilient corporate earnings against lingering geopolitical uncertainty.

The benchmark index added around 0.35% to 659.47. Germany's DAX rising 0.15% to 26,165.23 and France's CAC 40 gaining 0.52% to 8,714.73. London's FTSE 100 slipped 0.14% to 10,872.91, underperforming continental peers as exdividend names weighed on the benchmark.

The tone was broadly constructive after a steady session on Wall Street, with traders pointing to easing oil prices and hopes of progress in Middle East diplomacy as helping underpin sentiment. However, Brent crude was last up 4% at $82.69 a barrel, rebounding after Houthi rebels said they attacked a Saudi tanker off Yanbu, denting hopes of a Middle East deescalation.

In the defence sector, Rheinmetall slipped after the German group trimmed its 2026 sales outlook, citing slower programme rampups and procurement delays. The update overshadowed otherwise solid quarterly figures and left the stock among the weaker performers in the segment.

By contrast, Renk jumped 5.5% after reporting a surge in secondquarter orders that beat analysts' estimates. The company posted record intake for the period and reaffirmed its fullyear guidance, helping lift sentiment across suppliers exposed to Europe's rearmament cycle.

Healthcare was firmer, led by Hikma Pharmaceuticals, which climbed 9.5% after delivering a 9% rise in halfyear core operating profit and maintaining its annual outlook. The update helped offset weakness in larger drugmakers and supported the broader sector into the close.

Telecoms and media also provided support, with several names extending earlier earningsdriven gains. Analysts said corporate results remained the key driver of European equity strength, even as geopolitical risks continued to cast a shadow over energy markets.

Deutsche Telekom climbed after the group more than doubled its 2026 share buyback programme, lifting the planned amount to �5bn following quarterly earnings that topped forecasts. The move, aimed at addressing the stock's historically low valuation, helped push the shares sharply higher as investors welcomed strongerthanexpected core profit driven by TMobile US.

Reporting by Frank Prenesti for Sharecast.com