Overview
- The STOXX 600 reached record levels driven by upside corporate results and guidance upgrades, with markets closing at fresh highs after trading on Nov. 12.
- LSEG-compiled data show STOXX 600 firms are on track for roughly 25% quarterly profit growth, the strongest pace in four years and led by energy companies.
- Oil slid below $100 a barrel after U.S. officials said no imminent attacks on Iran were likely, which reduced a major input cost for European firms.
- Europe's smaller exposure to AI-linked stocks and investor rotation out of AI in the U.S. and Asia helped the region outperform the S&P 500 this quarter.
- Despite the gains, markets remain exposed to energy-driven inflation and higher interest rates, so the rally’s durability depends on broader buying beyond a few big contributors.