European stock markets extended their winning streak to a fourth consecutive session, driven by robust earnings reports, with WPP Plc leading gains in the media sector.
As of 15:24 Beijing time, the pan-European Stoxx 600 index advanced 0.4%, surpassing the record closing level set on Wednesday. Spain's IBEX 35 and France's CAC 40 also hit new all-time highs.
Media stocks posted the strongest performance, with WPP shares surging 18% after the advertising group's first-half profits exceeded analyst expectations.
Among the more than 30 companies reporting earnings on Thursday, Deutsche Telekom shares rose 5.6%. Europe's largest telecom operator raised its share buyback program by up to €3 billion (approximately $3.5 billion).
A strong second-quarter earnings season for European companies is bolstering the view that the stock market rally can continue. According to industry data, more than half of the companies in the MSCI Europe index that have reported results so far have beaten earnings expectations, as of Wednesday.
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 portfolios. He added that "Asia, Europe, and high-quality bonds help broaden revenue sources, increase income, and enhance the resilience of investment portfolios."
Comments