European shares climbed to a record high Wednesday, supported by stronger banking stocks and easing fears of rapid AI-driven disruption.
The pan-European STOXX 600 index rose 0.47% to 632.08, hovering near an intraday peak of 632.40.
Financials led gains after HSBC raised a key earnings target, lifting confidence across the banking sector. Banking indices advanced more than 1.7%.
HSBC shares surged 5.1% after the lender beat annual profit forecasts, despite booking a $4.9 billion one-off charge.
Concerns about imminent AI disruption softened as U.S. startup Anthropic launched new AI plug-ins, signaling businesses are adapting rather than being displaced.
Wind turbine maker Nordex jumped 15% after reporting stronger-than-expected 2025 core profits, boosting industrial sentiment.
However, Diageo fell 5.7% after cutting forecasts and slashing its dividend, dragging the broader food and beverages sector lower.
Investors also tracked potential U.S. tariffs of up to 15%, while awaiting Nvidia’s results, seen as a key test for global equity markets.
