European stocks climbed for a fourth consecutive trading day, driven by strong earnings reports, with WPP Plc leading gains in the media sector. The Europe-wide Stoxx 600 index closed 0.2% higher.
The media sector was the top performer, as WPP shares surged 29% in their biggest single-day jump since its 1995 listing. The advertising giant's first-half profit exceeded analyst expectations.
Deutsche Telekom shares rose 6.3% after Europe's largest telecom operator increased its share buyback program by up to €3 billion ($3.5 billion).
BPM Bank Public Limited Company shares gained 3.9% after the company reported second-quarter net profit that surpassed market forecasts.
The strong second-quarter earnings from European companies are reinforcing the view that the stock market rally can be sustained. According to industry research data, more than half of the companies in the MSCI Europe Index that have reported results so far have beaten earnings expectations.
Mark Haefele, Chief Investment Officer at UBS Global Wealth Management, noted that European equities are one of the asset classes investors can use to diversify concentrated positions. He added that "Asia, Europe, and high-quality bonds can help broaden income sources, boost returns, and enhance portfolio resilience."
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