ASML and SAP, the two largest technology companies in Europe, drive the Euro Stoxx 50 to its best level in 23 years. The index of blue-chip stocks in

The Euro Stoxx 50 index, a benchmark for blue-chip companies in the euro area, has reached its highest level since 2001.

This is due in part to strong earnings from the region's two largest tech companies, ASML Holding NV and SAP SE.

The index is up 156% since its low in March 2009, with more than half of those gains coming from five companies: ASML, LVMH SE, SAP, Siemens AG, and TotalEnergies SE.

ASML and LVMH alone have accounted for nearly 27% of the benchmark's return.

The index was previously dominated by telecom stocks, but they were replaced by oil and banking stocks after the dot-com bubble burst.

Today, financials are the largest industry group in the index, making up nearly 20%.

The index is still relatively cheap, with a forward price-to-earnings ratio of nearly 13 times, a 35% discount to the S&P 500 Index.

Europe's heavy reliance on China and the euro-area benchmark's high international exposure are potential risks.

The index is expected to benefit from a shift towards tech and a recovery in banks.

Tech stocks have yet to reach their record high from 2000, leaving room for further gains.

Banks are still trading at low levels and are expected to continue to recover as their profitability improves.

Europe is seen as a good source of diversification from the concentrated valuation risk in US equities.