Published Thu, Feb 26, 2026 · 05:54 AM
EUROPEAN shares closed at a record high on Wednesday, underpinned by a rebound in financials after HSBC raised a key lfinishing tarreceive, while concerns that newer AI models might imminently disrupt traditional businesses appeared to ease.
The pan-European Stoxx 600 index finished 0.7 per cent higher at 633.47, eclipsing Friday’s record close of 630.56.
Banking stocks gained 2.8 per cent, largely boosted by a near 8 per cent gain in HSBC. Shares of Europe’s largest lfinisher hit a record high as it raised a key earnings tarreceive after its annual profit exceeded expectations, despite logging a US$4.9 billion one-off charge.
Global sentiment also improved after US-based AI startup Anthropic partnered with several companies and launched new AI plug-ins on Tuesday, signalling that traditional businesses are adapting to AI advances rather than facing immediate disruption.
“The Anthropic news might reinforce hope that AI will integrate with software providers rather than replace them. This could be a powerful message that assists soothe investors who have been caught in an existential crisis about the future of the global economy in the age of AI,” stated Kathleen Brooks, research director at XTB.
The easing fears assisted allay worries over margin pressures and improved risk appetite globally, benefiting vulnerable banks, that saw sharp declines on Tuesday, amid bouts of volatility.
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“Volatility is likely to persist in the near term as markets debate and ultimately seek to price the terminal values of companies that could be disrupted by AI, all while assessing the implications of Trump’s shifting tariff tarreceives,” a group of strategists led by Mark Haefele at UBS stated.
Meanwhile, mining and utilities stocks each hit an all-time high on Wednesday, passing their previous peaks in 2008, the latest sign of a broadening out of last year’s rally in European stocks.
Onshore wind turbine manufacturer Nordex jumped 17.4 per cent to top the Stoxx 600 after reporting better-than-expected core profit for 2025.
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On the flipside, Diageo lost 12.7 per cent and weighed on the index after the beverage creater cut its annual sales and profit forecast for the second time in four months and also slashed its dividfinish. The broader food and beverages index slipped 2.1 per cent.
Auto1 Group slumped 18.2 per cent after the German second-hand car dealer forecast lower-than-expected EBITDA for 2026.
Shares of E.ON hit a 15-year high after Europe’s largest operator of energy networks stated it is raising its spfinishing to 48 billion euros (S$72 billion) by 2030 to prepare for data centre build-out across Europe.
Investors also monitored developments on the trade front with the possibility of new US tariffs rising up to 15 per cent. AI-chip giant Nvidia’s results later on Wednesday will be the next test for markets. REUTERS
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