Stoxx 600 record high: Europe tops August peak

Europe's Stoxx 600 topped its August record on November 5 as investors rotated out of AI chip stocks into miners and consumer-products shares across the region.

Lead

The pan-European Stoxx 600 index rose 0.7% on Thursday to roughly 661.99, moving above its August 11 closing record. The gain extended a run of European outperformance driven by a rotation away from the artificial intelligence trade and a strong third-quarter earnings season. Miners and consumer-products companies led the advance, while semiconductor shares fell across Europe and Asia.

The move followed a risk-on session on Wednesday, when the index jumped after US midterm election results. Oil prices slipping back below $100 a barrel also supported sentiment.

What Is Driving the Stock Market Today in Europe?

The main driver is a rotation out of AI hardware and into sectors with little exposure to the data-centre build-out. The US midterm outcome sharpened that shift. A Democratic congressional sweep raised the prospect of tighter oversight that could slow the pace of AI infrastructure spending in the United States, and chip stocks bore the brunt.

In Europe, ASML (ASML), the Dutch chip-equipment maker, fell 2.4%. Siltronic, a German wafer producer, dropped 7.3%, and French chip-materials firm Soitec lost 4.8%. Software names held up better, with SAP (SAP) and Dassault Systemes each up about 1%.

Lower US Treasury yields, which fell to eight-week lows, and reduced expectations of escalation in the Iran conflict added to the supportive backdrop for broader equities.

Why Are Miners Leading the Rally?

Miners are leading because earnings beats and firm metals prices lifted basic resources, which gained about 2% for the session. The sector has been one of the clearest beneficiaries of money leaving crowded technology positions.

Consumer-products stocks also contributed. Investors have favored defensive earnings streams and steady pricing power as growth-heavy portfolios were trimmed.

How Did Individual Companies Perform?

Earnings produced sharp moves in both directions. Air France-KLM (AF) jumped about 11% after third-quarter adjusted operating profit of 1.35 billion euros beat the 1.08 billion euros expected. Electrical equipment maker Legrand (LR) rose 5.5%, and renewable energy names Orsted and Nordex gained 4.2% and 4%.

On the downside, Rheinmetall (RHM) fell as much as 16.5% after the defense group cut its 2026 sales forecast and said a contract award had been delayed. Norwegian oil producer Aker BP lost 11.2%, as lower crude prices weighed on energy-linked shares.

National benchmarks were broadly higher. Early in the session, France's CAC 40 was up 1.25%, the UK's FTSE 100 up 0.89% and Germany's DAX up 0.52%. The Euro Stoxx 50 gained about 0.65% to near 6,306.

What Happened in Asia?

Asia split sharply, with chip-heavy markets falling and Chinese internet stocks surging. South Korea's KOSPI fell 5.28% to 5,383.80 as SK Hynix dropped 9.46% to 1,264,000 won and Samsung Electronics lost 7.57%. Foreign investors sold roughly 3.39 trillion won of Korean shares.

Japan's Nikkei 225 declined 1.79%, with chip-testing equipment maker Advantest down 14.71%. Taiwan's TAIEX fell 3.20%. In contrast, Hong Kong's Hang Seng climbed 3.68%, with Alibaba (BABA) up 8.45% and Tencent up 7.17%. The gap of almost nine percentage points between the Hang Seng and the KOSPI underlined how unevenly the AI unwind is spreading across regions.

Why Does the Record Matter for Europe?

The record matters because it shows Europe's index is being carried by sectors other than technology. The Stoxx 600 has comparatively little weight in AI hardware, so a sell-off in chip stocks that drags on US and Asian benchmarks can leave European indexes comparatively untouched. Capital leaving those trades has found a home in cyclical, commodity-linked and consumer-facing companies that dominate the region's listings.

The composition of the rally is also a test. Gains built on earnings beats in mining, steel, airlines and electrical equipment are tied to reported profit, rather than to valuation expansion alone. Still, the Rheinmetall and Aker BP declines show that guidance misses are punished heavily at current levels.

What Comes Next for European Equities?

The next test is whether the rotation persists once the US earnings calendar and policy signals around AI oversight become clearer. If Washington moves toward tighter scrutiny of AI infrastructure, pressure on chip stocks could continue and sustain flows into Europe. If technology earnings stabilize, some capital could return to US and Asian semiconductor names, reducing support for the region's defensive and resource-heavy sectors.

Oil and rates are the other variables. Crude holding below $100 a barrel and Treasury yields near eight-week lows would keep the macro backdrop favorable. A renewed jump in energy prices tied to the Iran conflict would reverse a key support for the rally.

Outlook

The Stoxx 600 now sits at a record, led by miners, consumer-products companies and earnings beats, while chip stocks in Europe and Asia retreat on concerns over tighter US oversight of AI. The durability of the rally depends on commodity prices, bond yields and the direction of AI spending in the months ahead.