European Shares Reach New Heights Amidst Geopolitical Tensions

European shares soared to record highs on Friday, driven primarily by Glencore's significant gains. Despite geopolitical tensions and weak earnings impacting sentiment, the STOXX 600 marked its longest winning streak since May. Technology and defense stocks also soared, aided by positive results and strategic discussions.

European shares reached an unprecedented high on Friday, primarily propelled by Glencore's remarkable surge that contributed to the STOXX 600 marking its longest consecutive weekly gain since May.

The rebound followed two days of losses, showcasing investor resilience amidst geopolitical tensions, specifically U.S. actions in Venezuela, and weak earnings affecting market sentiment. Glencore's 10% jump contrasted with Rio Tinto's 2.6% decline, following Rio's disclosed initial talks regarding a potential acquisition of Glencore, aiming to form the world's largest mining corporation. This helped the STOXX 600 index ascend by 1%.

Technology stocks prominently fueled the STOXX 600's daily advance, achieving their best weekly results in nearly two years. ASML, a Dutch chip equipment manufacturer, soared 6.8% after HSBC elevated its price target. Infineon and STMicroelectronics also posted gains. This sector benefited further from robust fourth-quarter outcomes from TSMC, the lead global contract chipmaker.

(With inputs from agencies.)