Best Stoxx 50 stocks as the blue-chip index surges to a 16-year high

The Euro Stoxx 50 index has surged to the highest level since 2007 as investors flock back to European equities. The index jumped to a high of €4,376, bringing the year-to-date gains to 14%. It has outperformed its global peers like the Nasdaq 100, S&P 500, and the Dow Jones.

Best-performing European stocks

The Euro Stoxx 50 index has jumped as sentiment in the European markets jumped. It is also worth noting that the EUR/USD exchange rate has jumped by more than 15% from the lowest level in 2022.

This rally happened as the European economy did better than expected. In late 2022, the overall view among investors was that the bloc would go through a deep recession as energy prices jumped. This was not to be as natural gas prices plunged to the lowest point since 2021.

Most Stoxx constituents have been in the green this year. Hermes, the giant luxury goods companies, has seen its stock surge by 34% this year. The company has done well as demand for these products jumped in China.

LVMH, the parent company of Tiffany, Dior, Fendi, and Givenchy, has seen its shares jump by 28% this year. As I wrote in this article, the company’s revenue and profitability soared in the first quarter. This growth has pushed Bernard Arnaut’s net worth to over $212 billion.

Stellantis stock price has soared by 28% as demand for its vehicles rose. Other top performers in the Stoxx 50 index are Adidas, Bayer, L’Oreal, and Inditex. Bayer shares have risen as the company continues with its turnaround. On the other hand, Adidas has jumped despite its recent Kanye West crisis.

The only Stoxx index in the red this year is Vonovia, the giant German real estate company. Its stock has dropped by more than 12%. The other top laggards in the index are TotalEnergies, EssilorLuxottica, KONE, and ING.

Euro Stoxx 50 technical analysis

Stoxx chart by TradingView

The daily chart shows that the Stoxx 50 index has been in a strong bullish trend in the past few months. As it rose, the index flipped the resistance at €4,323 into a support. This was the highest level on March 6 of this year. 

The index is being supported by the 25-day and 50-day exponential moving averages (EMA). Also, the Stochastic Oscillator has moved above the overbought level. Therefore, the index will likely continue soaring as buyers target the next psychological level at €4,500.