European Stocks Rise 0.3% for Fourth Day on Strong Demand

European stock markets have experienced a fourth consecutive day of gains, reaching their highest levels in over two weeks. This upward trend is driven by a combination of factors, including strong domestic demand and supportive economic data from key European economies.

The recent surge in European stock markets can be attributed to several developments. Notably, the Stoxx Europe 600 Index closed 0.3% higher, marking its fourth consecutive day of gains and reaching its highest level since May 21. This positive performance was bolstered by strong U.S. employment data, which alleviated concerns about economic growth and provided a favorable environment for European stocks.

Individual stocks showed mixed performance. Adidas and Puma both experienced slight declines, with Adidas down 0.3% and Puma down 0.6%. These decreases were influenced by the disappointing quarterly earnings report from Lululemon Athletica Inc., which also lowered its outlook. This news heightened market concerns about intensified competition and the impact of tariffs.

Since U.S. President Donald Trump announced tariff measures in April, European markets have shown resilience, with the benchmark index rising 9% from the start of the year. This recovery reflects a cautious optimism among investors, who are navigating a complex landscape of economic indicators and geopolitical developments.

Martin Frandsen, an investment portfolio manager, noted that while the outlook has improved, current valuation levels require investors to be more selective in their choices. This sentiment underscores the need for a balanced approach, considering both the potential for growth and the risks associated with high valuations.