Stoxx

• European stocks reached record highs this week, with both the STOXX 600 and Germany's DAX hitting all-time peaks. • The rally was driven by investor bets against imminent US rate hikes, easing inflation, and a balanced economic outlook in the Eurozone. • Cyclical stocks and defense shares saw significant gains, the latter fueled by ongoing geopolitical tensions.

• The Europe Stoxx 600 index is positioned to achieve its most significant quarterly gain in more than five years, driven largely by a surge in artificial intelligence interest. • Technology stocks specifically rose 1.7 per cent, putting them on track for their strongest quarterly performance since October 2001. • This growth highlights the profound impact of the AI boom on European equity markets and investor sentiment toward tech-driven sectors.

• European markets, including the Stoxx 600 and FTSE 100, are reacting to geopolitical tensions and potential trade disruptions. • The U.S. Trade Representative has proposed tariffs of up to 12.5% on 60 trading partners, including the EU, China, and Japan, over alleged failures to ban forced labor goods. • In corporate news, Zara parent company Inditex saw its stock rise over 5% following a fiscal first-quarter earnings update on Wednesday.