STOXX 600 hits record high on robust earnings; all eyes on BoE rate decision (updated)

Astrazeneca Pharma India

06/02/2025 10:27

(For a Reuters live blog on U.S., UK and European stock
markets, click LIVE/ or type LIVE/ in a news window)

        * 
      AstraZeneca up after FY25 sales above estimates, Q4
revenue beat
    

        * 
      Aurubis Q1 profit beat, shares rise
    

        * 
      Maersk jumps on better-than-expected Q4 profit
    

        * 
      Soitec near five-year low after cutting FY25 sales outlook
    

        * 
      BoE rate decision at 1200 GMT
    

        * 
      FTSE 100 at all-time high, up 1.1%
    

        * 
      STOXX 600 at record peak, up 1.1%
    

  
 (Updates with morning prices)
    By Nikhil Sharma
       Feb 6 (Reuters) - European shares hit a record high on
Thursday, buoyed by a raft of upbeat earnings, while Britain's
FTSE 100 also scaled an all-time peak ahead of a likely rate cut
by the Bank of England (BoE). 
    The pan-European STOXX 600 index  .STOXX  was up 0.7% as of
0930 GMT. The benchmark index last hit a lifetime high on
January 31.
    The heavyweight healthcare sub-index  .SXDP  rose 0.8%,
lifted by a 3.2% jump in drugmaker AstraZeneca  AZN.L . It
forecast 2025 sales above analysts' expectations after
fourth-quarter revenue beat estimates.
    The earnings also boosted the benchmark FTSE 100 index
 .FTSE , which was up 1.1%.
    Basic resources  .SXPP  was the top sectoral winner on the
STOXX 600, adding 2.4% after Swedish miner Boliden  BOL.ST 
advanced 8% on a bigger-than-expected rise in fourth-quarter
core earnings.
    The sub-index got an additional lift after Aurubis
 NAFG.DE , Europe's largest copper producer, reported
first-quarter pretax profit above market expectations. Its
shares rose 3.4%.
    Societe Generale  SOGN.PA  soared 9% after the lender's
fourth-quarter profit more than doubled, helping it announce
shareholder payouts at the upper end of expectations. 
    This boosted banks  .SX7P  by 1.2%.
    Meanwhile, all eyes are on the BoE's policy outcome later in
the day, which is expected to bring its key rate down to 4.5%
from 4.75% in a bid to boost Britain's sluggish economy amid
still-high inflation.
    This will be the central bank's third rate cut since the
start of the COVID-19 pandemic in 2020, trailing its peer, the
European Central Bank (ECB), which has already cut five times
since June 2024.
    After delivering a quarter-point cut last week, the ECB
indicated a further reduction in March.
    "Markets are rallying in general on the back of supportive
monetary conditions that are coming out with the ECB cut...so,
you've got strong earnings supported by accommodative monetary
policy," said Patrick Armstrong, chief investment officer at
Plurimi Wealth.
    European equities have outperformed their Wall Street peers
in the first six weeks of 2025 as investors continue to seize
much lower valuations from the region in light of a more
stimulative policy outlook.
    However, ECB board member Piero Cipollone warned that the
U.S. administration's trade war with China could have a
detrimental impact on the 20-member euro zone.
    The U.S. imposed a 10% tariff on all Chinese imports this
week, prompting retaliatory measures from Beijing.
    Among other stocks, Danish shipping giant Maersk
 MAERSKb.CO  rose 10.2% after it reported fourth-quarter profit
above forecasts.
    French semiconductor materials supplier Soitec  SOIT.PA 
sank 30% to a near five-year low after it cut its sales forecast
for 2025.
    


 (Reporting by Nikhil Sharma in Bengaluru; Editing by Mrigank
Dhaniwala and Sonia Cheema)
 ((Nikhil.Sharma@thomsonreuters.com;))