European equities advanced on Thursday morning, with the STOXX 600 reaching a new intraday record as strong corporate earnings and renewed hopes of de-escalation in the Middle East supported risk appetite. Brussels participated in the rally: the BEL 20 gained around 0.6%, led by KBC after the Belgian bank raised its 2026 outlook.
BRUSSELS, August 6, 2026 — European stock markets were broadly higher at midday on Thursday, extending their recent advance despite continuing weakness in technology shares.
The pan-European STOXX 600 rose approximately 0.5% to 660.22 points by 10:49 CEST, setting another intraday record after closing at all-time highs during the previous two sessions.
Investor sentiment was supported by two principal factors: a largely encouraging European earnings season and cautious optimism surrounding negotiations aimed at reducing tensions between the United States and Iran and reopening the Strait of Hormuz.
At Euronext Brussels, the BEL 20 advanced approximately 0.6% to around 5,812 points, placing the Belgian benchmark close to a new record. KBC was the main corporate focus after publishing a second-quarter profit of €1.152 billion and upgrading its full-year revenue forecasts.
European indices at midday
| Index | Midday performance* | Market trend |
|---|---|---|
| STOXX Europe 600 | +0.5% | New intraday record |
| CAC 40 | +0.6% | Luxury and consumer stocks higher |
| DAX | Around flat to slightly higher | Siemens limited the advance |
| FTSE 100 | +0.3% | Healthcare and corporate results supported |
| IBEX 35 | +0.9% | Among Europe’s strongest markets |
| FTSE MIB | +0.5% | Banks and cyclicals advanced |
| AEX | Around flat | ASML and technology shares weighed |
| BEL 20 | +0.6% | KBC results supported Brussels |
Indicative changes observed during the European morning session. Prices and percentages may change before the close.
Earnings drive the STOXX 600 to another record
Corporate results remained the principal engine of the European rally.
Analysts now expect second-quarter earnings from STOXX 600 companies to increase by nearly 21% year on year, according to LSEG data cited by Reuters. At the beginning of May, the expected increase had been approximately 12.5%.
This upward revision suggests that European companies have so far absorbed geopolitical uncertainty, higher energy costs and tighter monetary conditions better than initially feared.
Telecommunications and media stocks recorded some of the largest movements.
Deutsche Telekom gained approximately 5.7% after increasing the maximum size of its 2026 share-buyback programme by €3 billion to €5 billion. The broader European telecommunications sector rose around 2.1%.
Advertising group WPP surged approximately 24%, putting the shares on course for their largest one-day gain since 1992. The company exceeded organic-growth expectations and said its turnaround remained on track.
The exceptionally sharp movement made WPP one of the morning’s most actively traded and closely followed European stocks.
European winners at midday
| Company | Approximate change | Principal catalyst |
|---|---|---|
| WPP | +23.8% | Better-than-expected organic growth |
| Hikma Pharmaceuticals | +9.5% | Higher half-year operating profit |
| Deutsche Telekom | +5.7% | Buyback programme increased to €5 billion |
| Renk | +5.5% | Strong second-quarter orders |
| Xior Student Housing | +4.6% | Strong buying in Brussels-listed property shares |
| CFE | +4.2% | Broad small- and mid-cap buying |
| Hermès | +3.4% | Luxury shares supported Paris |
| Agfa-Gevaert | +2.6% | Belgian small-cap advance |
Hikma Pharmaceuticals reported a 9% increase in half-year core operating profit while maintaining its annual outlook. German defence supplier Renk benefited from stronger-than-expected order intake.
In Paris, luxury stocks supported the CAC 40. Hermès gained approximately 3.4%, while LVMH added around 1.3%.
European losers at midday
Not every sector participated in the advance. Technology shares remained under pressure after the sell-off in Asian semiconductor stocks and renewed investor concern about the amount of capital being committed to artificial-intelligence infrastructure.
The STOXX 600 technology sector declined approximately 0.3%, while ASML’s weakness limited the performance of Amsterdam’s AEX.
| Company | Approximate change | Principal factor |
|---|---|---|
| Celyad Oncology | -9.6% | Volatile small-cap biotechnology trading |
| Siemens | Around -5.5% | Market reaction to quarterly results |
| Atenor | -2.8% | Continuing pressure on property developer |
| Melexis | -2.2% | Semiconductor-sector weakness |
| Rheinmetall | -0.8% | Reduced 2026 sales outlook |
| ASML | Around -0.7% | Global semiconductor pullback |
Siemens was one of the principal drags on the DAX after its earnings publication. Rheinmetall also moved lower after reducing its 2026 sales outlook, although the broader European aerospace and defence sector remained positive.
BEL 20 approaches another record
Euronext Brussels followed the wider European rally, with the BEL 20 trading near 5,812 points around midday, up approximately 0.6%.
The benchmark has gained more than 23% over the past twelve months and was trading close to its latest record level.
KBC provided important support. The bank-insurer published second-quarter net profit of €1.152 billion, slightly above the approximately €1.11 billion average analyst forecast.
KBC also raised its 2026 outlook:
- Expected total-income growth was increased to approximately 11%, from at least 9.9%.
- Expected net interest income was raised to around €7.05 billion, from at least €6.73 billion.
- Customer lending increased from the previous quarter.
- Loan-impairment charges declined.
- Additional geopolitical and macroeconomic provisions were considerably lower than in the first quarter.
KBC shares rose by approximately 2% during the morning, reaching an intraday record above €130 before easing slightly. The stock was among the most actively traded BEL 20 constituents, with more than 90,000 shares changing hands relatively early in the session.
Higher interest-rate expectations are supporting the European banking sector. KBC expects the European Central Bank to raise its deposit rate by another 25 basis points to 2.50% in September because of continuing inflationary pressure.
Euronext Brussels winners
The strongest percentage gains on the wider Brussels market were concentrated outside the BEL 20.
Xior Student Housing
Xior gained approximately 4.6%, making it the strongest significant Brussels-listed riser around midday.
The student-housing group has benefited from strong occupancy, rent growth and improving investor sentiment towards listed European property companies. Because Xior has a smaller free float than the largest BEL 20 companies, its shares can move more sharply when trading activity increases.
CFE
Construction and investment group CFE advanced approximately 4.2%. The shares are relatively less liquid than major BEL 20 constituents, meaning moderate buying can generate a sizeable percentage movement.
Agfa-Gevaert
Agfa-Gevaert rose approximately 2.6%, continuing a volatile period for the imaging-technology company.
KBC
Among the BEL 20’s large capitalisation stocks, KBC was the most important positive contributor. Its gain carried considerably more index weight than the sharper percentage movements in smaller companies.
Euronext Brussels losers
Celyad Oncology
Celyad Oncology fell approximately 9.6%, making it the largest percentage decliner. However, the biotechnology company is a very small and highly volatile share, and its movements should not be interpreted as representative of the broader Belgian market.
Atenor
Property developer Atenor declined around 2.8%. The company remains sensitive to refinancing conditions, office-property valuations and the execution of its asset-disposal programme.
Atenor recently announced the disposal of its Olympia development project in Budapest as part of its 2025–2027 strategic plan. Despite this progress, investors continue to price in substantial execution and balance-sheet risk.
Melexis
BEL 20 semiconductor company Melexis lost approximately 2.2%, following the wider decline in global chip stocks.
Technology shares had already weakened in the United States and Asia. South Korea’s Kospi dropped 4.6%, with SK Hynix and Samsung Electronics recording steep losses as investors took profits from the artificial-intelligence and memory-chip rally.
Brussels’ heaviest trading activity
Trading activity in Brussels was concentrated primarily in the market’s large, liquid companies and in shares affected by corporate news.
| Share | Volume assessment | Reason for activity |
|---|---|---|
| KBC | High morning interest | Q2 results and upgraded outlook |
| AB InBev | Structurally among Brussels’ most liquid shares | Large free float and BEL 20 weighting |
| UCB | Regular institutional activity | Large market capitalisation and healthcare exposure |
| Melexis | Elevated attention | Global semiconductor sell-off |
| Xior | Strong relative activity | Sharp price gain in property sector |
| Celyad Oncology | High volatility relative to size | Speculative biotechnology trading |
Exact cumulative volumes remain incomplete at midday and will continue to increase until the Euronext closing auction. Volume comparisons are particularly important for smaller Brussels stocks: a large percentage movement in Celyad, CFE or Agfa-Gevaert may involve considerably less capital than a smaller movement in KBC, AB InBev or UCB.
For that reason, KBC’s gain was more significant for the Belgian market than the larger percentage increases recorded by Xior and CFE.
Middle East developments support cautious optimism
Investors were also assessing a proposed arrangement involving Iran and Oman that could contribute to ending five months of conflict and reopening the Strait of Hormuz.
According to Reuters, the proposed agreement could give Iran a role in controlling ships entering the Gulf. The details remain uncertain, including whether Tehran could impose tolls on commercial vessels.
The market nevertheless interpreted the negotiations as a potential step towards de-escalation.
Oil prices remained volatile. Attacks on Saudi tankers in the Red Sea and Gulf of Aden revived concerns about energy supplies, preventing a more substantial decline in crude prices.
Brent crude traded close to $80 per barrel, while West Texas Intermediate remained around $75.
A lasting reopening of the Strait of Hormuz would be particularly important for European companies because lower energy and transport costs could reduce inflationary pressure. However, investors remain cautious after several previous attempts at de-escalation failed to produce durable results.
Technology remains the principal weak spot
The European market’s record level conceals a widening divergence between sectors.
Telecommunications, media, healthcare and selected consumer companies advanced strongly, while semiconductor and technology shares remained under pressure.
The global technology pullback followed disappointing reactions to several US corporate results and growing scrutiny of artificial-intelligence spending. Investors are increasingly asking whether the large investments in data centres, chips and computing infrastructure will generate sufficiently high returns.
That change in sentiment affected Melexis in Brussels and ASML in Amsterdam, even though both companies have different positions within the semiconductor supply chain.
What to watch this afternoon
European investors will monitor several factors during the remainder of the session:
- Wall Street’s opening: US technology weakness could limit the European rally if the Nasdaq extends its decline.
- Middle East negotiations: New information about the Strait of Hormuz could rapidly move oil, shipping and defence stocks.
- KBC trading: Investors will continue assessing whether its upgraded outlook justifies the stock’s record valuation.
- Semiconductors: Melexis, ASML and other European chip shares remain vulnerable to further selling.
- Market breadth: The sustainability of the STOXX 600 record will depend on whether gains extend beyond a limited group of earnings-driven winners.
- Closing-auction volumes: Brussels trading volumes often increase sharply during the final auction, potentially altering the ranking of the session’s most active shares.
Midday market outlook
European markets entered the afternoon with positive momentum, supported by corporate earnings and tentative diplomatic optimism.
The STOXX 600’s latest record demonstrates continued investor confidence in European equities. Nevertheless, the concentration of gains in specific earnings-driven shares—and continuing weakness in technology—suggests that market sentiment is constructive rather than uniformly bullish.
Brussels presented a similarly positive but selective picture.
The BEL 20’s advance was supported by KBC’s strong results and upgraded guidance, while Melexis moved against the market as semiconductor shares declined. On the wider Brussels exchange, Xior, CFE and Agfa-Gevaert led the gainers, while Celyad, Atenor and Melexis recorded the largest losses.
The principal question for the afternoon is whether Wall Street can reinforce Europe’s advance or whether renewed pressure on technology stocks will encourage investors to take profits from record levels.
Market data was observed during the morning session on August 6, 2026 and may differ from closing prices. This article is for informational purposes and does not constitute investment advice.
Sources
- Reuters — European shares scale record peak on earnings and US-Iran optimism — STOXX 600, sectors, European movers and geopolitical context.
- Reuters — KBC raises annual outlook — second-quarter profit, net-interest-income forecast and updated guidance.
- Euronext — European and Belgian index quotations — BEL 20, CAC 40, AEX and other Euronext benchmarks.
- Euronext Brussels — Company announcements — KBC results and regulated company news.
- TradingView — Belgian stock-market movers — Brussels gainers, losers and volatility data.
- Associated Press — Global markets and Asian technology sell-off — Asian-market performance and European opening context.
