European shares opened higher on Wednesday and traded close to record levels, supported by upbeat forecasts from Siemens Energy and US-based artificial intelligence infrastructure company CoreWeave , which helped ease concerns about the outlook for AI-related investments. However, persistent inflation worries limited broader market gains, Reuters reported.
The pan-European STOXX 600 index rose 0.7% to 662.83 points by 0807 GMT, bringing it within touching distance of record highs reached in August, Reuters reported.
Siemens Energy shares climbed 6.5% after the company signalled expectations of higher profit margins in 2027 and announced plans to more than triple its dividend. The positive outlook lifted sentiment across the European industrial and technology sectors.
Shares of Siemens Energy's peers Schneider Electric and Legrand gained around 2.6% each, while the broader technology sector advanced 1.7%.
Investor sentiment also received support from CoreWeave, which said it expected to achieve adjusted profitability in the first half of 2028. The company's outlook offered some reassurance to investors concerned about the sustainability of spending on artificial intelligence infrastructure.
However, losses in some stocks weighed on the broader market. Wind turbine manufacturer Vestas fell 6% after reporting third-quarter operating profit below market expectations.
Czech ammunition and arms producer CSG plunged 18% after lowering its full-year operating margin forecast, making it one of the biggest losers on the STOXX 600.
Meanwhile, rising crude oil prices added to investor caution. Brent crude rebounded following shipping attacks in the Strait of Hormuz, raising concerns about potential disruptions to global energy supplies.
Markets were also assessing the implications of stronger-than-expected US inflation data released a day earlier, which boosted expectations of a Federal Reserve interest rate hike in December.
The combination of renewed inflation concerns, higher oil prices and uncertainty over the US monetary policy outlook continued to temper optimism across European equity markets.