Feb 25 (Reuters) - European shares rose to a record high on Wednesday, underpinned by a rebound in financials after British bank HSBC raised a key lending target, while concerns that newer AI models might imminently disrupt traditional businesses appeared to ease.
The pan-European STOXX 600 index was up 0.4% at 631.6 points by 0824 GMT, having briefly hit an intraday record high of 632.40 points earlier in the session. Banking stocks gained more than 1% each as broader global sentiment improved after
U.S.-based AI startup Anthropic partnered with several companies and launched new AI plug-ins, signalling that traditional businesses are adapting to AI advances rather than facing immediate disruption.
Banks are often viewed as vulnerable to rapid technological change. Signs that companies are integrating AI in a measured way helped ease concerns about margin pressure and supported risk appetite, which typically benefits financial stocks.
Similar concerns have sparked bouts of volatility in global markets several times this year, with European banks posting sharp declines on Tuesday.
Lifting sentiment was HSBC, Europe's largest lender, which raised a key earnings target after its annual profit exceeded expectations, despite logging a $4.9 billion one-off charge sending.
Onshore wind turbine manufacturer Nordex jumped 11.6% after reporting better-than-expected core profit for 2025.
On the flipside, Diageo lost 6.5% and weighed on the index after the beverage maker cut its annual sales and profit forecast for the second time in four months and also slashed its dividend.
(Reporting by Avinash P and Johann M Cherian in Bengaluru; Editing by Sherry Jacob-Phillips)
