Siemens Energy and CoreWeave Drive European Stocks to Record Close

The STOXX 600 closed at a record 663.05 on Wednesday, up 0.72%, as Siemens Energy surged 10.8% on a raised 2027 margin outlook and CoreWeave promised adjusted profitability in the first half of 2028.

The pan-European benchmark finished just below its intraday all-time high of 663.41, the level where it stalled a day earlier. Germany's DAX rose 1.2% and hovered near its own record. The EURO STOXX 50 gained 1.04% to 6,393.39. On Tuesday, a hot US inflation report had trimmed the index's gains and left it short of a record.

Two corporate outlooks did most of the work.

Siemens Energy raised its 2027 profit-margin expectations and said it plans to more than triple its dividend. The stock jumped 10.8% to lead the DAX.

CoreWeave said it expects to reach profitability on an adjusted basis in the first half of 2028, lifting AI infrastructure suppliers on both sides of the Atlantic. Its US shares climbed about 24.7% to $60.77 as European markets closed, according to Reuters. The rally carried through to Wall Street, where chip stocks and the Nasdaq finished sharply higher.

Which suppliers moved in Europe?

Europe's technology sector rose 2.5%. Chip-equipment and materials suppliers led the advance:

• Soitec: +11.9%
• Aixtron: +8%
• Infineon: +6.4%
• ASML: +3.2%

Electrical-equipment makers that sell into data centers also climbed. Schneider Electric added 3% and Legrand 2.2%.

Defense stocks lagged. Czech maker CSG fell 21.6% after cutting its full-year operating margin forecast. Retail and food and beverage, sectors with little AI exposure, ranked among the weakest groups. Brent crude rebounded after shipping attacks in the Strait of Hormuz, keeping inflation in view for European investors.

Societe Generale analysts called the rally "somewhat stretched" given macro and political risks, and see limited further upside by year-end. Traders expect at least one quarter-point ECB rate increase by February 2027, and hawkish Federal Reserve comments after the October CPI report reinforced bets on a US hike next month.

"The current big uncertainty is will this entire AI investment really be profitable?" said Thomas Romig, chief investment officer for multi-asset at Assenagon.

How did Asia's chipmakers trade?

Tokyo extended its rally. The Nikkei 225 closed at 61,248.59, up 789.01 points or 1.31%, its third straight gain, after reclaiming 60,000 on Tuesday. Advantest contributed about 378 points of the advance and Tokyo Electron about 135. Fast Retailing was the biggest drag at roughly 88 points. The broader Topix rose 0.92% to 3,929.39. The yen weakened to about 158.8 per dollar as Treasury yields climbed after the US inflation data.

Seoul rebounded hard after a weak open. The Kospi closed up 136.23 points, or 2.6%, at 5,375.36. The tech-heavy Kosdaq jumped 5.62% to 705.10, with a buy-side program-trading halt triggered for a second day.

Foreign investors bought a net 655.26 billion won of shares, according to Yonhap, concentrating on Samsung Electronics and SK hynix. Samsung rose 3.57% to 206,000 won. SK hynix gained 5.36%. Korean defense names also rallied: Korea Aerospace Industries added 7.71% and LIG Defense & Aerospace 9.73%.

Hong Kong moved the other way. The Hang Seng fell 241 points, or 0.98%, to 24,315.92, and the city's tech index dropped 1.41%. BYD lost 3.8%, Meituan 3.5% and Li Auto 3.4%. Tencent fell 1.96% and Alibaba 0.98%, while SMIC rose 3.7%. On the mainland, the Shanghai Composite gained 0.46% to 3,680.

What sits behind October's $50 billion exit?

Wednesday's buying in Seoul followed a heavy month of foreign selling across the region. Overseas investors pulled a net $49.77 billion from equities in South Korea, Taiwan, India, Indonesia, Thailand, Vietnam and the Philippines in October, the largest monthly outflow since June, according to LSEG data cited by Reuters.

Taiwan lost a net $30.68 billion, the most since at least January 2008. South Korea shed $14.59 billion. Outflows across the group reached a further $22.6 billion in the first days of November.

Reuters attributed the selling to worries about hyperscalers' cash burn and tougher AI rules ahead of the US midterms. The MSCI Asia Pacific ex-Japan index fell 6.91% in October against a 1.69% drop in the MSCI All Country World Index. Exness strategist Wael Makarem said the flows reflect "a retreat from AI-linked positions amid increased doubts about AI infrastructure spending."

The record close leaves the market's direction resting on whether CoreWeave's 2028 profitability target and Siemens Energy's fatter dividend can sustain confidence in AI capital spending through the rate-path uncertainty ahead.