DAX hits fresh record highs as Europe shrugs off US tech weakness

European stock markets are maintaining their upward momentum, with Germany's DAX leading the charge this week. The benchmark index opened 1.0% higher, reaching new record levels despite indications of another difficult session on Wall Street.

• Eurostoxx +0.3%
• Germany DAX +1.0%
• France CAC 40 +0.6%
• UK FTSE +0.3%
• Spain IBEX flat
• Italy FTSE MIB -0.2%

The picture is not entirely uniform, but European investors have more to cheer than their American counterparts on this morning. S&P 500 futures are trading 0.4% lower, while Nasdaq futures have dropped 0.9%, with technology stocks again appearing fragile after recent efforts to recover from last week's severe sell-off.

Nvidia, once the standout star of the AI rally, is now under intense scrutiny amid a series of scandals involving CEO Jensen Huang's affairs. The chipmaker's shares have fallen a further 6.5% in pre-market trading. If that decline holds, Nvidia will open at its lowest point since July 2025.

The DAX's continued climb to record highs suggests that investors no longer view Europe merely as a passenger in Wall Street's rally. However, some unevenness remains beneath the surface, with Spain and Italy showing slight declines. That said, both indices have recovered sufficiently to erase all their October losses.

Lower oil prices and easing geopolitical concerns gave European stocks a boost earlier in the week, and that sentiment has carried through alongside stronger third-quarter corporate earnings. Investors have embraced this and remain engaged as the second half of the week unfolds.

There may also be a subtle rotation at play, with US tech stocks experiencing significant volatility in recent weeks, prompting investors to look across the Atlantic. However, European equities face their own headwinds, including growing fiscal risks in France, higher borrowing costs, and a potential stagflation issue that may be emerging.

Returning to today's market open, Europe continues to follow its own course. The DAX is setting the pace, but the real challenge will be whether the broader region can maintain its performance if Wall Street's technology woes intensify.