European stocks near record highs on strong earnings

Shares rose to near record highs on Thursday, underpinned by a better outlook from Europe’s leading carmaker Volkswagen and increasing confidence in economic recovery in Germany and more widely.

The STOXX index of 600 European companies was up 0.2% at 442.50 points, just below its record high of 443.61. The MSCI’s broadest gauge of world stocks, ACWI, was up 0.18% at 700.98 points, about 10 points short of its record high set last month.

In economic news, strong domestic demand for consumer goods propelled a bigger than expected 3% jump in German industrial orders in March, data showed on Thursday, suggesting that manufacturers in Europe’s largest economy will support a recovery in the second quarter.

Among the standout earnings, shares in Volkswagen rose 1% after Europe’s biggest carmaker raised its 2021 targets, pointing to strong demand for premium cars. British retailer Next raised its full-year profit guidance for the second time in two months as it reported better than expected first quarter trading, sending its shares 2% higher.

Germany’s Curevac, hoping for approval for its COVID-19 vaccine, tumbled 10% following news that U.S. President Joe Biden has thrown his support behind waiving intellectual property rights for COVID-19 vaccines.

Investors will look for more clues on economic recovery from European Central Bank Vice President Luis de Guindos, and the central bank’s board member Isabel Schnabel, who speak on Thursday.

Commodity prices drew strength from the prospects for economic recovery, with copper flirting with 10-year peaks. Oil prices extended gains to edge near their March tops as crude stockpiles in the United States, the world’s largest oil consumer, fell more sharply than expected. U.S. crude futures stood at $65.91 per barrel, up 0.4% on the day and just below Wednesday’s two-month high of $66.76.

In Asia, Japan’s Nikkei jumped 1.8% as it reopened after a fiveday holiday.