European Stocks Hit Record High Amid Optimism in Financials and Corporate Earnings

European stocks reached new heights due to relief over a potential U.S. government shutdown end and positive financial earnings. The STOXX 600 index and UK's FTSE 100 broke records. Strong performances by banks and British energy company SSE highlighted the market, while Infineon and RWE boosted German equities.

European shares soared to record highs on Wednesday, driven by a surge in financials. Investors were optimistic about an end to the U.S. government shutdown and remained attentive to mixed corporate earnings updates.

The pan-European STOXX 600 index rose 0.58%, reaching 583.56 points by 0906 GMT, with the UK's FTSE 100 also achieving a record. Hopes were high globally as the U.S. House of Representatives seemed poised to resolve the shutdown, a move that could influence the Federal Reserve's monetary policy decisions.

Financial stocks in Europe, especially banks, outshined other sectors thanks to strong earnings reports. Britain's SSE led gains with an 11% jump, while German equities were buoyed by robust corporate results, including a promising sales target revision from Infineon and higher-than-expected profits from RWE.

(With inputs from agencies.)