Analysis of European Stock Market Highs and Their Impact on Global Markets

Based on market data obtained through financial tools and authoritative information sources, the following is an analysis of the current situation of the European stock market and its global impact. It should be noted that the statement that “European stock markets hit all-time highs when resuming trading after the holidays” has not yet been confirmed by authoritative news sources. The information I have collected shows that major European indices are at relatively high levels, but there is no official news evidence explicitly confirming “new all-time highs”. Therefore, this analysis will focus on the currently available market data and trends.

According to data from brokerage APIs [0]:

• STOXX 600 European Index
  : Current price 588.20, 52-week range 464.26-589.61. Up 15.97% year-to-date (from 507.61 to 588.66), the current level is very close to the 52-week high, approaching but not explicitly confirming a new all-time high.
• Germany DAX Index
  : Current price 24281.29, 52-week range 18489.91-24771.34. Up 21.96% year-to-date (from 19923.07 to 24297.54), also close to the 52-week high.
• Hong Kong Hang Seng Index
  : Current price 25635.24, 52-week range 18671.49-27381.84. Year-to-date performance is stronger, with a cumulative increase of 49.61% (from 17135.12 to 25635.24), but the current level is still about 6% away from the year’s high.

The above data shows that European stocks are generally at relatively high levels, while the Hang Seng Index’s year-to-date gain is more significant. However, the claim of “new all-time highs” lacks support from authoritative news and should be treated with caution.

In the absence of authoritative news evidence for “new all-time highs”, the impact of the current high levels of European stocks on the global market is mainly reflected in the following aspects:

1. Risk Appetite
   : European stocks at relatively high levels often reflect increased investor confidence in global economic growth and corporate earnings, which theoretically helps boost global risk asset appetite. However, due to the lack of authoritative news confirmation of “new all-time highs”, this inference cannot be clearly supported by event-based evidence.

2. Sector Rotation and Capital Allocation
   : According to industry performance data [0], sectors such as communication services, real estate, and consumer staples have performed well recently, which may guide capital to rotate sectors globally. For example, if European technology or cyclical stocks rise, they may attract global capital attention to related sectors.

3. Asset Correlation
   : European markets have a certain correlation with US stocks and Hong Kong stocks in short-term trends. Currently, the US S&P 500, Nasdaq, and Dow Jones have risen by 2.95%, 3.09%, and 4.89% respectively in the past 60 days [0], showing that global stock markets generally prefer risk assets. The high levels of European stocks (even if not explicitly confirming new all-time highs) may strengthen this trend, but there is no authoritative news providing direct causal evidence.

4. Valuation and Strategy
   : The high levels of European stocks may prompt investors to re-evaluate valuation differences and make corresponding adjustments in global portfolios to optimize returns and risks.

Based on existing data and information, the following factors are considered regarding whether Hong Kong stocks can follow European market trends to achieve a breakthrough:

1. Stronger Year-to-Date Performance Than European Stocks
   : The Hang Seng Index has risen 49.61% year-to-date [0], far exceeding the STOXX 600’s 15.97% and DAX’s 21.96%, indicating that Hong Kong stocks have strong momentum.

2. Policy and Fundamental Support
   : The strong year-to-date performance of Hong Kong stocks is supported by fundamental factors such as China’s loose policies, valuation repair, and improved market sentiment.

1. Market Correlation
   : Although Hong Kong stocks have a certain correlation with the global market, their trends are more influenced by the mainland Chinese economy and policies, and the direct driving effect of European stock markets is limited.

2. Technical Aspects
   : The Hang Seng Index is still about 6% away from its year’s high, and faces resistance from previous highs. Whether it can break through depends on the combined impact of mainland Chinese policies and the global market environment.

3. Information Uncertainty
   : Since the “European stock markets hitting all-time highs” lacks authoritative news evidence, the potential impact of this event on Hong Kong stocks cannot be empirically supported. Therefore, the breakthrough of Hong Kong stocks is more likely to come from their own fundamentals and policy drivers rather than a single external market news.

• Regarding the Statement of European Stocks “Hitting All-Time Highs”
  : Currently, there is no authoritative news source confirming this statement, and relevant claims should be treated with caution.
• Impact on Global Markets
  : The current relatively high levels of European stocks may boost global risk appetite and promote sector rotation, but the specific impact depends on subsequent data and news confirmation.
• Trend of Hong Kong Stocks
  : Whether Hong Kong stocks can achieve a breakthrough will depend more on the combined effect of China’s policies, economic fundamentals, and global market sentiment, rather than a single external market news.

Given that market information and events are yet to be authoritatively confirmed, investors should continue to关注:

1. Whether major European indices officially confirm new all-time highs.
2. Global economic data, central bank policy trends, and geopolitical risks.
3. Changes in mainland Chinese policies and their substantive impact on Hong Kong stocks.
4. Trends in industry sector rotation and capital flows.

[0] Jinling API Data

For further analysis of specific markets or company details, please feel free to consult further.