Published by Global Banking & Finance Review®
Posted on October 22, 2025
1 min readLast updated: January 21, 2026
Add as preferred source on GoogleEuropean utilities stocks rally for 14 days, driven by electricity demand and stable borrowing costs, nearing a record streak since 1998.
MILAN (Reuters) -European utilities stocks extended this month's rally into a 14th day on Wednesday, heading for their longest winning streak since a record 15-day run in March 1998.
Investor sentiment around utilities has turned increasingly positive, driven by a surge in electricity demand linked to the rapid expansion of AI datacentres and the electrification of transport and industry. Prospects of stable borrowing costs in the region have also helped the rate-sensitive sector.
By 0906 GMT, the STOXX utilities index was up 0.6%, lifting its year-to-date gains to nearly 24% and making it the second-best performing sector in Europe after banks.
Angelo Meda, head of equities at Banor SIM in Milan, said the rise was due to several factors.
"It's a mix of thematic investing in areas like electrification and datacentres, a shift toward defensive stocks amid economic uncertainty, and the realisation that inflation in Europe seems under control, suggesting rates won't rise further," he said.
Top gainers on Wednesday include Redeia, United Utilities and EDP Renovaveis.
(Reporting by Danilo Masoni; Editing by Amanda Cooper)
Electricity demand refers to the amount of electrical power required by consumers at a given time. It can fluctuate based on various factors, including weather, time of day, and economic activity.
Renewable energy is energy derived from natural sources that are replenished at a faster rate than they are consumed. Examples include solar, wind, and hydroelectric power.
Investment is the act of allocating resources, usually money, in order to generate income or profit. Investments can take various forms, including stocks, bonds, real estate, and more.
Financial markets are platforms where buyers and sellers engage in the trading of assets such as stocks, bonds, currencies, and derivatives. They play a crucial role in the economy by facilitating capital flow.
Explore more articles in the Finance category
