European equities advanced on Thursday morning, with the STOXX 600 approaching fresh records as investors welcomed stronger German industrial orders. Rheinmetall fell after lowering its sales outlook, while Brussels outperformed.
BRUSSELS, August 6, 2026 — European stock markets opened mostly higher on Thursday, resisting the technology-led decline seen overnight in Asia and on Wall Street. Encouraging economic data from Germany and continued optimism about European corporate earnings supported risk appetite.
In early trading, the pan-European STOXX Europe 600 gained approximately 0.6%, keeping the benchmark close to the record levels reached earlier this week. Germany’s DAX rose around 1.3%, Britain’s FTSE 100 added more than 0.4%, and France’s CAC 40 advanced about 0.7%.
The eurozone’s blue-chip Euro Stoxx 50 gained roughly 0.3%, trading near 6,500 points and close to its recent all-time high.
Brussels outperforms
The BEL 20 was among Europe’s strongest national indices, rising approximately 1.2% to around 5,776 points during the morning. By comparison, the CAC 40 was little changed after its initial advance, while Amsterdam’s AEX slipped marginally.
The strength in Brussels extended the Belgian benchmark’s recent rally and brought it closer to another record. Gains across several heavyweight companies helped the BEL 20 outperform the broader European market.
Euronext’s market data showed the ISEQ 20 in Dublin also performing strongly, while the Portuguese PSI and Italy’s MIB ESG index recorded more modest advances.
German factory orders beat forecasts
Investors were encouraged by an unexpected improvement in German manufacturing demand. Industrial orders increased 3.1% month on month in June, significantly exceeding economists’ expectation of a gain of approximately 0.3%.
Domestic orders rose 7.8%, while particularly strong demand was reported for machinery and electrical equipment. The figures provided some reassurance that Europe’s largest economy may be stabilising after a difficult period for its manufacturing sector.
However, the headline reading was heavily influenced by large contracts. Excluding major orders, demand declined 0.5%, suggesting that the underlying industrial recovery remains fragile. May’s increase was also revised down from 1.9% to 0.3%, according to official data reported by Reuters.
Rheinmetall falls after forecast reduction
Rheinmetall was one of the most closely watched stocks in Frankfurt. Its shares fell by approximately 4% after the German defence group lowered its 2026 revenue forecast following the cancellation of a major frigate programme.
The company now expects annual sales of between €13.7 billion and €14.2 billion, compared with its previous range of €14.0 billion to €14.5 billion. The abandoned naval contract is expected to reduce potential revenue by around €300 million.
Rheinmetall nevertheless maintained its other financial targets. The company reported a 70% increase in second-quarter sales to approximately €3.3 billion and continues to benefit from the long-term expansion of European military budgets. Reuters reported that the group is still targeting annual sales of €50 billion by 2030.
Asian technology sell-off limits enthusiasm
The positive European opening contrasted with a difficult session in Asia. South Korea’s technology-heavy market suffered particularly heavy losses, with Samsung Electronics and SK Hynix falling sharply amid renewed concerns about semiconductor valuations and the enormous cost of artificial-intelligence investment.
Japan’s Nikkei declined approximately 0.9%, while South Korea’s Kospi lost more than 4%. The pullback followed losses in several high-profile US technology shares, including AMD, despite generally solid corporate results.
European technology stocks therefore remain vulnerable to further profit-taking. Nevertheless, the continent’s lower weighting in highly valued technology companies helped its broader indices resist the global decline.
Oil and geopolitical developments remain in focus
Energy markets were relatively stable during the European morning. Brent crude traded near $79 per barrel, while US West Texas Intermediate hovered around $75.
Investors continue to monitor negotiations involving the United States and Iran. A diplomatic agreement could reduce concerns about shipping through the Strait of Hormuz and place further downward pressure on oil prices. Failure to reach an agreement, however, would preserve a geopolitical risk premium across energy and financial markets.
Gold extended its advance as investors sought protection against geopolitical uncertainty and a weaker US dollar.
What investors are watching next
Attention will now turn to upcoming US labour-market indicators. Recent private-sector employment data suggested that job creation slowed in July, increasing uncertainty about the strength of the American economy and the Federal Reserve’s next move.
For European equities, the immediate question is whether earnings growth and improving economic data can sustain the rally after the STOXX 600 registered a series of record closes.
Thursday’s opening suggests that investors are still willing to buy European shares despite weakness in global technology stocks. However, with valuations elevated and the Middle East outlook unresolved, intraday volatility could increase as the session progresses.
Market levels are indicative and reflect early trading. They may change during the session.
