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European Earnings Boosted by Sales Beats, but Tariffs Cast Shadow

European stocks have hit record highs in February, driven by strong earnings and a weaker euro. However, companies remain cautious about the impact of U.S. tariffs, which have been a dominant topic of discussion among executives. Earnings have increased 5.4% year-over-year, and sales have risen 4.7%, the highest quarterly growth rate since Q4 2022. Bank earnings remain strong, and luxury stocks show signs of recovery.