Europe midday: Stoxx edges towards new record on Wall St rally

European shares edged towards fresh highs on Friday after a bullish session on Wall Street overnight, with Standard Chartered in focus after a profit jump and $1bn share buyback.

The pan-regional index was up 0.21% to 496.14 with all major continental bourses higher.

“Spring is in the air, and American markets are certainly blooming this season. The S&P 500 closed up at record highs on Thursday, following Nvidia’s blockbuster results, and broader optimism about AI and economic growth,” said Hargreaves Lansdown analyst Sophie Lund-Yates.

“The tech-heavy Nasdaq was also unsurprisingly in on the action and is within touching distance of its all-time high. While a lot of the excitement might be justified, we are entering the realms of frothiness, which of course increases risk.”

“Latest figures show that the US market remains tight, which further muddies the picture for the Federal Reserve. Those banking on swift rate cuts are likely going to be disappointed.”

In economic news, the German economy contracted by 0.3% on the quarter in the fourth quarter, according to data released on Friday by state statistics agency Destatis, in line with the initial estimate and consensus.

On the same quarter a year earlier, GDP shrank by 0.4%.

In equity news, shares in Standard Chartered surged by 9% after the Asia-focused bank reported an 18% rise in annual pre-tax profits, lifted its dividend and announced a $1bn share buyback.

Lufthansa shares were lower as ongoing strikes over staff salaries weigh on the German airline.

Deutsche Telekom shares fell despite Europe’s largest telecoms company lifting guidance and unveiling a €2bn buyback and higher dividends.

Shares in Georg Fischer were up 7% after the Swiss industrial group withdrew its plan for a capital increase to finance the takeover offer for Finland's Uponor.

Reporting by Frank Prenesti for Sharecast.com