European Stocks Surge to Record High Amid Global Market Rally

European stock markets experienced a significant rebound today, aligning with the upward trends seen in U.S. futures and stock markets. According to Jin10, the previous pessimism has gradually eased, leading the STOXX Europe 600 Index to close at its highest point of the day, marking a new historical high. Since hitting a low in April last year, the STOXX index has risen by 33%, with its growth momentum strengthening since the beginning of the year. Analysts have noted that European assets are returning to domestic markets as core governments shift towards higher deficit spending. Some of this capital movement may be driven by the weakening U.S. dollar, prompting a retreat from risk. Meanwhile, U.S. tech stocks have been a major force behind the superior performance of American markets compared to global counterparts. However, concerns about the artificial intelligence sector and high valuations are increasing. There is substantial reason to believe that AI's productivity enhancements will have a greater impact on the real economy, potentially leading to a reevaluation of European stocks. Many industries in Europe benefit from government protection, and the lack of startups reduces the risk of business disruption.