Europe midday: Stoxx surges to record high as tariff worries ease

(Sharecast News) - European shares hit a record high on Wednesday boosted by optimism that threatened tariffs by US President Donald Trump may not be as severe as first feared, while Adidas shares were in focus after upbeat fourth-quarter results, sending Germany's DAX index also to a record high The pan-regional Stoxx 600 surged to a record 530.54 points. Britain's FTSE 100 also hit a fresh intra-day record as investors shrugged aside concerns that new US President Donald Trump would hit Europe with new tariffs.

"European equities are following along in the wake of the resumed rally in the US. So far, Europe and the UK have not been mentioned by Trump as tariff targets," said David Morrison, senior market analyst at Trade Nation.

"President Trump also announced 'Stargate', a joint venture between OpenAI, Oracle and Softbank to invest around $500 billion in AI infrastructure. The news helped to lift tech stocks, while Netflix added over 14% after the close on unexpectedly strong subscription numbers."

In economic news, Britain's government borrowed £17.8bn in December, up £10.1bn from a year earlier and more than the £14bn forecast by economists.

Adidas jumped 6% on strong holiday period sales and profit. The news helped rival Puma to gain 2.5%. Germany's DAX index outperformed the regional benchmark, rising 1.30% and hitting a new record of 21,332 before settling back to 21,314.

Munters Group surged as the Swedish climate control company benefited after Trump announced plans to invest $500bn in AI infrastructure over the next four years. The company provides air conditioning for data centres.

EasyJet fell despite narrowing losses, while chocolate maker and cocoa processor Barry Callebaut also slumped after reporting lower-than-expected sales volume for the first quarter due to delayed orders as clients renegotiate product prices as cocoa costs hit record highs.

Reporting by Frank Prenesti for Sharecast.com