European shares reached another record high on Thursday, as a strong run of company results and easing tensions in the Middle East drew investors back into the region's stock markets. The pan-European STOXX 600 rose 0.3% to 665.38 points by 0806 GMT, according to Reuters, moving past the record close of 663.05 set on Wednesday.

Germany's DAX climbed about 1% to a new high, while France's CAC 40 added 0.8% and London's FTSE 100 edged up 0.2%, dpa-AFX reported. Siemens was among the strongest gainers, rising 3.8% after the industrial group raised its growth outlook, and drugmaker Merck gained 1.6% after lifting its 2026 profit forecast for the third time this year, Reuters reported.

Earnings season drives the rally

Company profits have been the main engine of the advance. Data compiled by LSEG and cited by Reuters put STOXX 600 companies on course for quarterly profit growth of about 25%, which would be the strongest pace in four years. The index has gained 4.7% so far this quarter, while the S&P 500 in the United States is down 0.4% over the same period.

Insurers also featured among the risers. Allianz gained about 2% after reporting better-than-expected third-quarter earnings and raising its full-year outlook, while Munich Re rose 1.7% after its results beat expectations, dpa-AFX reported. Staffing group Adecco jumped nearly 15% after its quarterly update.

The gains also reflected a rotation by investors out of AI-linked shares in Asia and the United States and into European stocks, Reuters reported, alongside relief that an escalation in the Middle East may be avoided and lower oil prices.

Sources: Reuters, TradingView / dpa-AFX