Published Thu, Jul 23, 2026 · 06:05 AM
[BENGALURU] European shares ended at a two-week high on Wednesday (Jul 22), driven by energy and defence stocks, while Randstad soared in its strongest day since 2008 after the world’s largest staffing company topped quarterly revenue expectations.
The Netherlands-based Randstad rose nearly 14 per cent to the top of the pan-European Stoxx 600 index after signalling a rebound in demand across key markets.
The index gained 0.6 per cent to 647.07 points, its highest close since Jul 6.
Most sectors inched higher. Aerospace and defence stocks led sectoral gains, up 2.6 per cent.
The energy index firmed 0.8 per cent as Brent crude prices broke above US$93 a barrel, their highest in six weeks, after tankers carrying Saudi oil to Asia turned back from the Red Sea following threats from Yemen’s Iran-backed Houthis.
The re-escalation in the Middle East conflict has brought inflation concerns back to the forefront, and dimmed the appeal of European stocks given the region’s heavy reliance on fuel imports.
Tech stocks on the Stoxx 600 dipped 0.5 per cent ahead of quarterly results from Alphabet and Tesla in the US after markets close. The results will be watched for clues on whether the rally in artificial intelligence-related stocks still has room to run.
The sector has seen notable swings recently as investors balance AI-led growth against increasingly stretched valuations, particularly among chip stocks, which have posted an eye-popping rally this year on Wall Street and Asian markets.
“A rotation away from tech has resulted in a better day for European markets overall, which continue to defy the strength in oil. The focus now shifts to the US as the first of the hyperscalers, Alphabet, reports earnings, offering some relief from what appears to be a fast-deteriorating situation in the Middle East,” said Chris Beauchamp, chief market analyst at investing platform IG.
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The European Central Bank is widely expected to hold interest rates steady on Thursday, even with this latest rise in oil prices.
But at least one 25-basis-point increase is priced into markets by the end of the year, along with a roughly 60 per cent chance of a second one, according to LSEG-compiled data.
Investors are also monitoring the effect of the Middle East conflict on corporate performance.
Airbus gained 7 per cent after the planemaker launched a 5 billion euro (US$5.7 billion) share buyback programme and unveiled new midterm targets including a near-doubling of profits by 2029.
Nestle shares rose 2.2 per cent after the Financial Times reported that private equity firm Platinum Equity is nearing a deal to buy about a 50 per cent stake in the company’s European water business.
Finland’s load-handling equipment maker Hiab jumped 11.2 per cent after higher second-quarter orders.
In London, British inflation cooled by more than expected in June, in a boost for new Prime Minister Andy Burnham as he seeks to ease living costs. REUTERS
