By Avinash P and Johann M Cherian
Feb 3 (Reuters) - Europe's benchmark share index hit a record high on Tuesday, as a global rout in commodity markets appeared to stabilize, while the focus shifted to corporate earnings from the likes of Amundi and Publicis.
The pan-European STOXX 600 added 0.4% to 619.86 points, advancing from a record close. Among sectors, basic resources rose the most, adding 2.3%.
Commodity-linked stocks had come under pressure since late last week, tracking a slump in prices of
precious metals after Kevin Warsh, a policy hawk, was nominated as the next U.S. Federal Reserve chair. A hike in CME margin requirements also put the brakes on the metals' record rally. But commodity prices have recouped some losses since late on Monday. [GOL/]
European mining sector remains the best-performing one this year with a more than 13% gain.
European industrials stocks also edged higher, with defence sector advancing 1.1%.
Germany is weighing investments ranging from spy satellites and space planes to offensive lasers under a 35 billion euro ($41 billion) military space spending plan to counter growing threats from Russia and China in orbit.
"Industrials are supported in Europe by the defence spending argument and by the infrastructure spending in Germany that benefits the whole industrial space — construction, capital goods, aerospace and defence," said Paul Jackson, global market strategist, EMEA, at Invesco.
Jackson said Monday's data that pointed to better-than-expected manufacturing activity in the region and the U.S. was also underpinning the sector.
EARNINGS IN FOCUS
Europe's largest asset manager Amundi climbed 5.2% after reporting higher-than-expected net inflows in the fourth quarter.
German semiconductor wafer supplier Siltronic added 2.3% after reporting preliminary fourth-quarter results with core profit and revenue beating market expectations.
But Publicis slipped 7.1% despite the French advertising giant forecasting a 4% to 5% organic growth for 2026 after its bet on artificial intelligence and data services helped it beat full-year sales expectations.
The broader media index fell 3.3%, with Citi analysts saying expectations for the sector were high.
In other major updates, France finally got a 2026 budget on Monday as two no-confidence motions failed, allowing the legislation to pass, signalling a period of relative stability for Prime Minister Sebastien Lecornu's weak minority government.
On the data front, French consumer prices rose less than expected in January, data from statistics agency INSEE showed.
(Reporting by Avinash P and Johann M Cherian in Bengaluru; Editing by Mrigank Dhaniwala and Sahal Muhammed)
