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European stocks draw fresh inflows as earnings strength lifts indices to records

European stocks draw fresh inflows as earnings strength lifts indices to records

Bank-led earnings, a rotation out of volatile semiconductor shares and easing Middle East tensions helped send the Stoxx Europe 600 and major national benchmarks to fresh highs.

Fact Check
The headline claim is directly confirmed by 'DAX Rises to New Peak' (+0.8% at 26,223, fourth consecutive gain, fresh record above 26,200) and 'DAX Advances to New Highs', both dated 2026-08-04, and corroborated by the Trading Economics news stream quote. The claim's additional note that the benchmark later erased early gains and closed lower on profit-taking matches 'DAX Pauses Rally' (2026-08-05, closed down 0.3% at 26,139). All numeric and directional details align across sources, and the US-Iran arrangement and earnings themes are consistently described.
Summary

European equities have kept setting records as investors rotate away from volatile U.S. artificial-intelligence and semiconductor stocks and respond to the strongest quarterly earnings growth in four years. The Stoxx Europe 600 has repeatedly hit all-time highs, Germany's DAX moved above 26,000, and the FTSE 100, CAC 40 and IBEX 35 also reached records. FactSet data show second-quarter net profit for European companies is projected to rise 22% from a year earlier, led by banks after higher oil prices and market volatility boosted trading revenues. BNP Paribas posted 4.345 billion euros in net profit, up 33%, while UBS reported a 17% increase and record results. The Stoxx banking index is up more than 21% this year, versus an 11.5% gain for the broader Stoxx Europe 600. Bloomberg data show European equity ETFs recorded their first monthly net inflows since late February, and BlackRock said its regional equity products attracted $4.4 billion last month as an "anti-AI trade" gathered pace. Easing U.S.-Iran tensions, oil below $90 a barrel and eurozone growth of 0.4% in the second quarter have added support, though strategists say investor interest remains selective and U.S. profit growth still far exceeds Europe's.

Terms & Concepts
  • anti-AI trade: An investment shift away from AI-linked stocks and toward markets or sectors seen as less exposed to that theme.
  • net inflows: The amount by which money entering a fund or asset class exceeds money leaving it over a set period.
  • Stoxx Europe 600: A broad benchmark index tracking 600 listed companies across European equity markets.