European stocks traded higher on Thursday, extending gains for a fourth consecutive session and climbing to fresh record highs. Investors remained focused on the latest corporate earnings and guidance while continuing to monitor developments in the Middle East, amid growing optimism that the US and Iran could be nearing a deal. Merck gained 1.5% after raising its 2026 earnings guidance. Rheinmetall advanced 0.8%, with investors looking past the company's lower 2026 outlook, which reflected the impact of a German government order cancellation earlier this year. Meanwhile, Siemens dropped more than 5% as its quarterly results disappointed investors despite the company reporting record industrial profit and a record level of new orders.