European stocks powered higher as the STOXX 600 index reached a fresh all-time high, catalysed by strong earnings results and growing optimism about interest-rate cuts. Energy and industrial sectors led the advance, while cautious commentary kept valuations in check. Analysts highlight that supportive macro signals plus domestic stimulus in key economies contributed to the move. Despite geopolitical tensions and inflation risks, the rally reflects a positive tone across European equity-markets that may extend if leadership broadens beyond cyclical sectors.