Highs

European equities keep reaching new highs.

ADVERTISEMENT

ADVERTISEMENT

The pan-European STOXX Europe 600 climbed to another record on Wednesday, closing at around 657 points after touching a fresh intraday high and extending its winning streak to a third consecutive session.

The blue-chip EURO STOXX 50, which tracks the euro area’s largest listed companies, also set a new all-time high during the day. The broader benchmark has now gained about 10% since the start of 2026.

The rally is broad-based. Germany’s DAX broke above 26,100 for the first time. France’s CAC 40 climbed to a record 8,700, while Italy’s FTSE MIB reached an unprecedented 53,540.

Record highs everywhere

Yet the companies leading Europe’s bull market bear little resemblance to the household names that have long defined the continent’s equity story.

Luxury groups are nowhere to be seen. Neither are the pharmaceutical giants that traditionally anchor European portfolios. Even banks, despite a strong year, have largely been overtaken.

Instead, the biggest winners of 2026 are the companies building the infrastructure behind the artificial intelligence boom: manufacturers of semiconductor wafers, chip-testing equipment, advanced substrates and industrial technology.

Europe’s stock market is no longer being led by brands consumers recognise. It is increasingly being powered by the suppliers enabling the world’s AI capital-spending race.

Why European stocks keep setting records

Several forces have come together to fuel the rally.

The immediate catalyst was geopolitical.

Reports that Washington and Tehran are moving towards a new agreement to reopen the Strait of Hormuz pushed oil prices sharply lower, easing inflation fears and reducing cost pressures for Europe’s manufacturers and airlines.

The economic backdrop has also surprised investors.

Eurostat’s preliminary estimate showed the eurozone economy expanded 0.4% quarter-on-quarter in the second quarter, double economists’ expectations, following flat growth in the first quarter. Annual growth accelerated to 1.0%.

Pantheon Macroeconomics’ chief eurozone economist Claus Vistesen said the euro area “comfortably beat expectations yesterday, posting GDP growth of 0.4% quarter-to-quarter in Q2, after upwardly revised zero growth in Q1. This was 0.2pp above the consensus and 0.1pp above our forecast.”

Corporate earnings have added another pillar of support.

Second-quarter reporting has generally exceeded expectations, while global enthusiasm for artificial intelligence infrastructure has transformed a small group of European technology suppliers into some of the world’s best-performing stocks.

The 10 best-performing STOXX Europe 600 stocks in 2026

These are the 10 best-performing European stocks with a market capitalisation of €1 billion or more, ranked by share price performance through 5 August.

10. ArcelorMittal (+65.3%)

Europe’s steel champion has quietly become one of this year’s biggest industrial winners.

Shares of ArcelorMittal have gained 65.3% since the start of 2026, making the company the tenth-best performer in the STOXX Europe 600 through 5 August.

The Luxembourg-based group reported revenue of $16.5 billion in the second quarter and underlying operating profit of $2.1 billion, its strongest performance in Europe for three years.

Profitability improved as new EU import quotas reduced competition from cheaper foreign steel, while the company continued buying back its own shares, returning more cash to investors.

9. Raiffeisen Bank International (+67.6%)

Higher interest rates and resilient economic activity across Central and Eastern Europe have helped the Austrian lender outperform most of its European peers. Raiffeisen Bank International shares have climbed 67.6% year-to-date through 5 August.

First-half profit excluding Russia rose 25% to €708 million, prompting management to raise its full-year forecast for net interest income to €4.4–4.5 billion.

Investors have also welcomed stronger capital levels and easing concerns over the bank’s Eastern European operations.

8. Saipem (+75.8%)

The Italian engineering group has benefited from the global revival in offshore energy investment.

Saipem stock is up 75.8% in 2026 through 5 August, extending one of the strongest rallies among European industrial companies.

First-half revenue increased to €7.35 billion, while underlying operating profit rose 9.4% to €836 million. Its order book expanded to a record €29.9 billion, giving the company years of work already secured despite trimming guidance to reflect around €70 million of conflict-related costs.

7. STMicroelectronics (+105.7%)

The Franco-Italian chipmaker has emerged as one of Europe’s biggest beneficiaries of renewed enthusiasm for artificial intelligence infrastructure.

Shares of STMicroelectronics have more than doubled in 2026, rising 105.7%.

Second-quarter revenue climbed 26% to $3.49 billion, while the company returned to an operating profit after several difficult quarters. Management forecast around $3.7 billion in revenue for the current quarter, signalling that the semiconductor downturn is gradually easing.

6. AIXTRON (+121.0%)

The German company manufactures highly specialised equipment used to produce advanced semiconductors.

AIXTRON shares have surged 121% since the beginning of the year, placing the company among Europe’s biggest AI winners.

Second-quarter orders jumped 81% to €214.5 million, driven by booming demand for photonics and power-chip manufacturing equipment. Management reaffirmed its full-year revenue forecast of €560 million.

5. Technoprobe (+135.1%)

Few investors know Technoprobe, yet almost every advanced semiconductor relies on its testing technology before reaching customers.

Technoprobe has rallied 135.1% in 2026 through 5 August, making it one of Europe’s strongest-performing technology stocks.

Following a record first quarter with €187 million in revenue, management raised its full-year sales forecast to between €950 million and €1.05 billion, reflecting growing demand for AI-related chip testing equipment.

4. ams-OSRAM (+136.2%)

The Austrian sensor and photonics specialist has staged one of the European market’s biggest turnarounds.

ams-OSRAM stock has gained 136.2% since January.

Second-quarter revenue reached €805 million, at the top end of company guidance, while management continued making progress towards commercial production of its microLED technology for augmented-reality glasses.

Investors also welcomed the sale of its non-core sensor division to Infineon, strengthening the company’s balance sheet.

3. Tullow Oil (+136.4%)

The oil producer is the only energy company among Europe’s top-performing stocks this year.

Shares of Tullow Oil have advanced 136.4% year-to-date through 5 August.

Management recently increased its forecast for 2026 free cash flow to between $170 million and $250 million, more than doubling its previous guidance after benefiting from stronger oil prices during the first half of the year.

Ironically, the stock fell on Wednesday as hopes of easing tensions in the Middle East pushed crude prices lower.

2. AT&S (+343.5%)

Austria’s AT&S manufactures the advanced substrates that connect artificial intelligence processors with memory chips inside high-performance servers.

AT&S shares have soared 343.5% in 2026, making the company Europe’s second-best-performing stock.

When reporting quarterly results on 4 August, management forecast 30%–35% revenue growth this year, driven by continued investment in AI data centres.

Despite the spectacular rally, the shares remain about 40% below the record highs reached in June.

1. Soitec (+414.5%)

No European company has benefited more from the artificial intelligence investment boom than France’s Soitec.

Soitec shares have skyrocketed 414.5% since the start of 2026 through 5 August, making the company the best-performing constituent of the STOXX Europe 600.

The semiconductor materials specialist reported annual revenue of €592 million, down 34% as the industry worked through excess inventories. However, investors focused on signs that the recovery had begun.

Revenue from its fast-growing photonics business exceeded $100 million for the first time, while free cash flow reached €63 million, far ahead of analysts’ expectations.

Management expects revenue to return to growth during the current financial year, reinforcing confidence that Soitec is becoming one of Europe’s biggest beneficiaries of the global AI infrastructure build-out.

Ever ambitious and eager to test new horizons, Keegan announced midway through the 1976-77 season that he would leave Liverpool at the end of the campaign.

It brought some criticism from supporters, but was another example of deception never being part of Keegan’s character, allowing Liverpool time to line up Kenny Dalglish as his replacement.

He went out on the highest high in his final game, running the great German defender Berti Vogts ragged as Liverpool won the European Cup for the first time, beating Borussia Monchengladbach 3-1 in Rome.

Keegan left having scored 100 goals in 323 appearances.

There was talk of a move to Real Madrid, but in the end his destination was Hamburg, where he was a major success as they won the Bundesliga in 1978-79, though disappointment followed when they lost the European Cup final to Nottingham Forest the following season.

Keegan confirmed his world-class credentials at Hamburg, winning the Ballon d’Or in 1978 and 1979.

Hamburg was a surprise choice when Keegan left Liverpool, but after early struggles to win over team-mates, he became hugely popular, not just with his club but in the country, where they appreciated the Englishman’s down to earth approach and his willingness to integrate.

It all added to Keegan’s status as a global superstar, one of the most marketable sportsmen around, not just seen on the pitch but in adverts and advertising hoardings worldwide.

He famously did an advert for Brut aftershave with British boxer Henry Cooper, as well as the “Green Cross Code” road safety campaign.

While in West Germany, Keegan had another crack at music with the track Head Over Heels In Love. It peaked at number 31 in the UK, but climbed to number 10 in the German charts.

Keegan returned to England in 1980 with a shock move to Southampton, showing his enduring quality by winning the Professional Footballers’ Association player of the year award in 1982.

He did not win trophies at The Dell, but was still a player of the highest class in Lawrie McMenemy’s team, built around experienced stars such as Keegan, Alan Ball and Saints’ great Mike Channon.

The current heatwave is not expected to break any daily temperature records, however, on Thursday the Met Office announced there have been eight days in 2026 where the heat has reached or exceeded 34C.

There were two in the May heatwave, four in June’s and so far two in this one, which is a record for the calendar year, surpassing 1976 and 2020. A further 34C plus reading is anticipated on Friday.

During June’s heatwave, temperatures peaked at 37.7C in Lingwood, Norfolk, smashing the previous June record of 35.6C.

Wales also recorded its hottest June day with 35.9C in Cardiff, while Northern Ireland equalled its June record with 30.8C in Castlederg, County Tyrone.

Scotland fell just slightly short of hitting its all-time June record which was 32.2C set in 1893. In June its top temperature was 31.2C at Threave, in Dumfries and Galloway.

In this July heatwave the highest temperature so far this time has been 35.5C at Wisley in Surrey, on Thursday.

Although temperatures will drop off a little into the weekend, many places will still reach the official heatwave thresholds through much of next week.

People may be drawing comparisons with 1976, where the UK saw 16 consecutive days above 30C, but this record is not likely to be broken.

The highest temperature recorded in the UK was during the unprecedented heatwave of 2022, when an astonishing 40.3C was recorded in Coningsby, Lincolnshire.

A NUMBER of iconic landmarks have closed around the country, as Brits brace for record-breaking heat.

Temperatures today have already broken June weather records, with highs of 36C seen in Surrey.

Multiple British landmarks have completely closed or restricted public access today as the Met Office’s red weather warning takes effect.

This comes after over 1,000 schools shut doors across the South of England, West Midlands and Wales due to rapidly rising temperatures.

Tower Bridge, a London landmark that attracts nearly one million visitors annually, has shut entirely today and will remain shut tomorrow.

Operators have said the decision was made for “the welfare of our staff and visitors”, and plan to reopen the bridge on Friday.

HOT DEAL

Last-minute cheap breaks to UK holiday parks this sunny weekend from £11pp a night

PASS ON

More Brits are being banned from flights home due to confusing new passport rule

Changing of the Guard ceremonies at Buckingham Palace and Windsor Castle are suspended for the rest of the week.

The Household Division said: “We take the wellbeing of our soldiers and military working horses very seriously.

“Whilst it may be disappointing not to experience the Ceremonial Operations in full, it is important the wellbeing of the public, our soldiers and military working horses is maintained at all times.”

The historic spectacle, taking place on alternative days at Buckingham Palace and Windsor Castle, is a popular tourist attraction and “must see” for London visitors.

Greenwich landmarks the Cutty Sark and The Royal Observatory have also both announced their closures, with visitors of the area recommended to view the Queen’s House and National Maritime Museum as an alternative.

Away from the capital, various National Trust properties are operating on shortened hours, such as the Stourhead Estate in Wiltshire, Blists Hill Victorian Town in Shropshire, and Mottisfont House in Hampshire.

Longleat House and the Severn Valley Railway in Wiltshire, alongside the Wild Zoological Park in Wolverhampton, have also closed today and tomorrow.

The UK’s most visited museum, Natural History Museum, alongside the Victoria and Albert Museum have temporarily closed certain sections of the building, with the Young V&A shutting entirely.

The British Museum has further said on its website: “We may also temporarily close some galleries in the Museum to ensure the comfort and safety of staff and visitors.”

Beloved family attractions London Zoo and Chester Zoo are also shutting early on certain days, with London closing at 4pm both days, and Chester Zoo closing at 2pm on Thursday.

Outside, playgrounds in London’s Royal Parks have shut to keep staff, wildlife and visitors safe, including popular sites in Kensington Gardens, Hyde Park, Regent’s Park, and more.

Hampton Court Palace has also shut its Magic Garden from 1pm today, continuing until the end of tomorrow as the hot weather continues.

The Met Office red alert is in place for swathes of the country until late tomorrow night, with warm weather anticipated for the rest of the week.