European stock indexes approached peak levels

Major European stock indices approached record levels due to optimism associated with the growth of corporate earnings and a possible reduction in interest rates, Bloomberg reports.

The pan-European index Stoxx Europe 600 last week reached an all-time high of 525.33 points, before pulling back slightly. Among the leaders of growth are shares of raw materials companies, which is associated with a sharp increase in prices for gold and copper. Technological and industrial sectors also grew, while auto shares were among the laggards.

Players' sentiment is conditioned by better-than-expected quarterly financial reports and hopes for soon reduction of key rate by ECB.

On the background of this optimism in Morgan Stanley raised the forecast on MSCI Europe index for the next 12 months to 2500 points, which is 18% higher than the current level. The move is based on a number of factors, including improving macroeconomic indicators, rising corporate confidence and the fact that the assessment of AI proliferation is, in the bank's view, underestimated.