European Shares Climb As Earnings Bring Cheer

European stocks traded at record high levels on Thursday as investors cheered upbeat earnings from the likes of Legrand, Hermes and Siemens.

Meanwhile, traders shrugged off data that showed the U.K. economy grew less than forecast in the fourth quarter.

GDP grew 0.1 percent sequentially, the same pace of increase as seen in the previous quarter and slightly weaker than the forecast of 0.2 percent as business investment shrank and services stagnated.

On a yearly basis, GDP was up 1.0 percent compared to economists’ forecast of 1.2 percent.

The pan European Stoxx 600 edged up by 0.4 percent to 623.94 after ending little changed with a positive bias on Wednesday.

The German DAX jumped 0.9 percent, France’s CAC 40 added 1.1 percent and the U.K.’s FTSE 100 was up 0.4 percent.

British American Tobacco shares were modestly higher in London. The tobacco giant reported a 2.3 percent rise in annual profit and announced an increased £1.3 billion share buyback for 2026.

Consumer goods giant Unilever fell 2.3 percent after underlying sales grew 3.5 percent in 2025.

Schroders shares skyrocketed 29 percent after the investment management firm agreed to a £9.9bn takeover by U.S. asset manager Nuveen.

Legrand rallied 3.8 percent. The French electrical and digital building infrastructure group raised its dividend and set a 2026 growth goal of 10-15 percent excluding currency effects.

EssilorLuxottica soared 8 percent after reporting an 18 percent surge in fourth-quarter sales, riding a boom in demand for AI-powered glasses.

Luxury group Hermes International rose 2 percent after reporting another quarter of steady revenue growth.

Specialty-care biopharmaceutical firm Ipsen surged nearly 7 percent after reporting strong 2025 results and providing robust guidance for 2026.

Telecoms group Swisscom lost 3 percent after reporting lower net income for full-year 2025.

German industrial giant Siemens advanced 6 percent. The firm raised its fiscal 2026 adjusted earnings view and backed revenue growth forecast after reporting better-than-expected results during the first quarter.

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