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(Bloomberg) -- Europe’s Stoxx 600 index hit a record high for the first time since September, as investors grew optimistic that the harshest of threatened US tariffs may not be implemented.

The benchmark rose 0.6% to 529.14 points as of 8:31 a.m. in London, surpassing its previous intraday high of 528.68 set in September. Health care and industrial stocks were the biggest gainers on Wednesday, while Novo Nordisk A/S provided the biggest single boost to the index.

European equities have come back in favor this month, after posting one of their worst years relative to the US in 2024. Political uncertainty is also expected to fade this year after upcoming elections in Germany.

The Stoxx 600 has gained about 4.2% in January, and is on track to outperform the S&P 500 for a second straight month. A survey this month by Bank of America Corp. showed allocation to European equities surged to a net 1% overweight from 22% underweight, the second-largest jump in exposure to the region in 25 years.

“Europe is a nice spot to be in at the moment, also because we’ll have some important triggers like the German election next month,” said Alberto Tocchio, a portfolio manager at Kairos Partners. “Tariffs is another topic to watch in the short term, but the market is getting the idea that it shouldn’t be as bad as feared.”

In January, Danish health-care equipment maker Ambu A/S, crude oil shipper Frontline Plc, Swedish retail-trading platform Avanza Bank Holding AB and Swiss luxury giant Richemont SA have been among the best performers so far.

(Updates with intraday record high from first paragraph.)