(Bloomberg) — European stocks rose, following strong gains across Asian markets as results from China’s Alibaba Group Holding Ltd. fueled a fresh wave of optimism over artificial intelligence.
Most Read from Bloomberg
The Stoxx 600 Index added 0.3%, helped by robust earnings from Standard Chartered Plc and Air Liquide SA. The day’s biggest moves were in Asia, where a 14% surge in Alibaba pushed Chinese technology stocks to their highest level since 2022. US stock futures were muted, with S&P 500 contracts up 0.1%.
In Europe, stocks have roared higher this year on the back of resilient profits and optimism over peace talks in Ukraine. While some of the mood has been dented in recent days by tariff concerns and a feud between President Donald Trump and Ukrainian President Volodymyr Zelenskiy, the index is still set for a 0.2% gain this week, a ninth consecutive advance.
About $4 billion flowed into European funds in the week through Feb. 19, the most since February 2022, according to a note from Bank of America Corp. that cited EPFR Global data. Strategist Michael Hartnett reiterated a preference for global stocks to US peers, saying markets such as Germany, China, Japan and South Korea are more attractive at a time when business activity is improving.
In US premarket trading, digital payments firm Block Inc. and software firm Akamai Technologies Inc. slipped after issuing weak guidance. Profit outlooks for 2025 from US companies have been relatively subdued, strategists at JPMorgan Chase & Co. noted.
Meanwhile, the euro weakened 0.3% versus the dollar. Purchasing manager data showed business activity in the region hardly grew in February, reinforcing fears that the bloc remains mired in stagnation.
Traders were also looking ahead to Germany’s weekend election and hoping the results will allow the Conservative front-runner to forge a coalition that can push through economic reforms and loosen borrowing rules. If Europe’s biggest economy can spend more on defense, it may help calm a market rattled by Washington’s efforts to boost ties with Russia, they said.
Gold headed for an eighth consecutive weekly advance as the geopolitical and trade tensions fueled demand for the precious metal.
Some of the main moves in markets:
Stocks
-
The Stoxx Europe 600 rose 0.3% as of 10 a.m. London time
-
S&P 500 futures were little changed
-
Nasdaq 100 futures rose 0.1%
-
Futures on the Dow Jones Industrial Average were little changed
-
The MSCI Asia Pacific Index rose 0.7%
-
The MSCI Emerging Markets Index rose 1.3%
