Europe midday: Stoxx nudges fresh record on corporate earnings

(Sharecast News) - European stocks rallied from morning losses and nudged close to record territory on the back of strong corporate results and a surge in Asian and US markets overnight.

The pan-regional Stoxx 600 index was up 0.12% to 622 at 1151 GMT with major bourses mixed. In Japan, the Nikkei jumped to a fresh peak after Japan's conservative governing coalition stormed to victory in Sunday's snap election.

All three of Wall Street's benchmark indices finished higher on Monday, with tech stocks outperforming on a quiet day ahead of some closely anticipated economic data and corporate earnings over the coming days.

The Dow inched 0.04% higher to set a new closing high of 50,135.87 and the S&P 500 rose 0.47% to 6,964.82. However, the Nasdaq jumped 0.90% to 23,238.67, as tech heavyweights including Nvidia, Microsoft and Broadcom raced ahead.

Traders are also eyeing US retail sales later on Tuesday, with the data expected to show slowing growth in December, while on Wednesday the non-farm payrolls report is scheduled for release.

"Yesterday's US session saw a notable resurgence for the tech space, with the Nasdaq managing to push back above 25,000 as it attempts to regain the losses seen last week," said Scope Markets analyst Joshua Mahony.

"Concerns around the software sector remain prevalent, with Salesforce and ServiceNow remaining in the doldrums after recent declines. However, we have seen dip buyers enter the fray, with the Mag7 names gaining ground alongside the likes of Palantir, Broadcom, AMD and alike."

"Investors should grow accustomed to these jitters as we pass through the proof-of-concept stage where we are yet to see evidence that the huge boom in capex ultimately pays off."

In equity news, Thule Group soared after the Swedish outdoor equipment maker posted better-than-expected results on margin gains.

Philips shares jumped after publishing 2025 earnings. The electronics giant returned to profit but also cut its sales outlook for this year.

Gucci owner Kering surged after the luxury good group said it expects a return to growth this year despite a fall in quarterly sales.

Ams-Osram gained as the electronics company said it would axe around 2,000 jobs, or more than 10% of its workforce, as part of a cost-cutting program and reported a narrowed loss for the fourth quarter.

BP fell as the energy giant suspended its quarterly share buyback as it moved to bolster its balance sheet amid weak oil prices.

Standard Chartered was lower after chief financial officer Diego De Giorgi announced his departure to Apollo after two years at the London-based bank.

Reporting by Frank Prenesti for Sharecast.com