European shares were on track for their biggest weekly gain since late June. Strong earnings and signs of stability in global technology stocks lifted sentiment. Eurozone inflation remains well above the ECB's target, and investors are pricing in another rate hike.
European shares were on track for their biggest weekly gain since late June on Friday, as strong earnings reports and signs of stability in battered global technology stocks bolstered investor sentiment.
The pan-European STOXX 600 index rose 0.56% to 643.64 points by 0922 GMT, touching a more than three-week high. The benchmark was up more than 1.8% for the week.
Earnings steady a volatile week
Robust earnings from European firms helped steady markets at the end of a week marked by a selloff in high-flying tech names. The selloff followed concerns over Chinese competition and increased debt funding to develop AI infrastructure.
Michael Field, chief equity strategist at Morningstar, said: "A very good positive earnings season is really going to boost investor sentiment." He added the season could move markets back up to some of the recent highs.
Earnings for STOXX 600 companies are expected to rise 20.7% in the third quarter from a year earlier, slightly down from the 21% growth forecast last week, according to LSEG I/B/E/S data.
Nordex and Aixtron gain, Schneider reverses
Among individual stocks, chipmaker Aixtron advanced 5% after beating order intake estimates for the third quarter and confirming annual guidance. Nordex soared 12.7% after the wind turbine maker posted a better-than-expected third-quarter core profit and lifted its full-year margin forecast.
Schneider Electric, however, reversed earlier gains and was last down 1.3%, even after the industrial group raised its 2026 core profit and revenue targets for the second time. Nestle gained 1% after JPMorgan upgraded the stock to overweight.
The tech sector gained 1%, on course to recover most of Thursday's losses. The food and beverage index rose 0.6%, putting it on track to be the best-performing sector on the STOXX 600 this week.
Inflation stays above the ECB target
The eurozone's final HICP inflation reading for September came in at 3.8% year-on-year, in line with economists' expectations but well above the European Central Bank's 2% target.
The ECB has raised borrowing rates by 50 basis points in 2026 to 2.50%. Investors are already pricing in another quarter-point rate hike at its December meeting, according to data compiled by LSEG.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
