European Stocks Hit Record Highs

European stock markets, including the STOXX Europe 600 and Germany's DAX, reached record highs, marking the best weekly performance in over a month. This rally was supported by gains in cyclical stocks and a broader market participation beyond just tech. Investors pushed back expectations for an imminent US interest rate hike by the United States — Federal Reserve, and a lukewarm US jobs report further contributed to this sentiment. In the Eurozone, slower-than-expected inflation in June and comments from European Union — European Central Bank President Christine Lagarde suggesting a more balanced economic outlook also bolstered confidence. Defence stocks saw significant gains due to increased geopolitical tensions following Russia's bombardment of Ukraine. Individual companies like Siemens, AIXTRON, Soitec, BE Semiconductor, and Pluxee also reported positive movements, while L Oréal faced declines due to analyst expectations. Germany's draft budget for 2027 indicated increased borrowing.