July 31 - European shares climbed to a record on Friday, driven by renewed investor interest in technology stocks around the globe and supported by corporate earnings results that kept markets buoyant through a week marked by central bank decisions and ongoing hostilities in the Middle East.
The pan-European STOXX 600 was up 0.9% at 655.2 by 0712 GMT, putting the index on track for its fourth straight month of gains. Technology names outperformed, with the sector on the STOXX 600 jumping 2.2% as it followed stronger moves in Asian markets and improving demand for AI-linked stocks.
Among notable movers, Soitec rose 7.2%, Infineon Technologies increased 7%, and ASML added 3.5%, reflecting broad strength in semiconductor materials, components and capital equipment.
Energy-sector dynamics offered additional support for risk appetite. Oil prices fell by more than 1%, leaving Brent crude below $90 a barrel, as higher flows through a key chokepoint helped offset the lack of a major breakthrough in the U.S.-Iran conflict.
Corporate earnings were prominent on the tape. Melrose Industries was the weakest member of the STOXX 600, sliding 9.3% after the GKN Aerospace owner said it expects additional costs of 3.25 million to 30 million ($33.6 million to $40.3 million) in the second half of 2026 following an incident at its Garden Grove, California, facility in May.
On the positive side, Credit Agricole rose 4.5% after reporting second-quarter results that topped expectations, contributing to gains in the financials segment.
Overall, the market rally was concentrated in technology and related cyclical sectors while individual company-specific news - including operational setbacks - created dispersion across the STOXX 600. Investors continued to balance macro developments, corporate earnings and geopolitical risks as the month closed.
Market snapshot
- STOXX 600: +0.9% to 655.2 by 0712 GMT
- Technology sector on STOXX 600: +2.2%
- Soitec: +7.2%; Infineon Technologies: +7%; ASML: +3.5%
- Melrose Industries: -9.3% after announced H2 2026 costs
- Credit Agricole: +4.5% after better-than-expected Q2 earnings
- Brent crude: held below $90 a barrel following an oil price decline of more than 1%