European equities set a new record, with a rebound in energy and technology shares helping extend the region's recent outperformance versus other markets.
At Wednesday's close, the Stoxx Europe 600 rose 0.7% to 663.05 points, surpassing the previous closing record set in August.
The market turmoil at the end of last week mainly hit technology stocks, while European markets benefited relatively. Since last week's U.S. midterm elections, the pan-European benchmark has gained 2.7%, while the S&P 500 has risen 0.5% over the same period.
Roger Lee, head of equity strategy at Cavendish, said: "Skepticism about AI has heated up somewhat, and some capital flows have therefore reversed, with Europe benefiting; at the same time, falling oil prices have also been a positive, easing pressure for further rate hikes."
"It has been a decent earnings season, but I'm afraid what is really driving the market right now is two numbers: one is the oil price, and the other is the U.S. Treasury yield," he added.
On Wednesday, as Brent crude climbed back above $94 a barrel, energy stocks were among the top gainers. More broadly, however, the sharp drop in oil prices this month has been one of the important positives for European equities. After the Democrats won control of the U.S. Congress, investors saw a reduced risk of a renewed escalation of the Iran conflict.
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