European Stocks Earnings Offset Global Tech Rout

European stocks wrapped up their strongest week since June on Friday, as a run of upbeat quarterly results helped the region shrug off a global technology selloff, Reuters reported. The pan-European STOXX 600 climbed 0.7% to 644.74 points, its highest level in more than three weeks, leaving the benchmark up over 2% for the week.

The gains spread across the major national bourses. Germany’s DAX added 0.95%, Britain’s FTSE 100 rose 0.38% and France’s CAC 40 edged up 0.28%, according to Malaysian outlet BusinessToday, with all three finishing the week in positive territory.

Earnings do the heavy lifting

Europe’s resilience stood out against a rough week for technology shares elsewhere, where investors fretted about the growing use of debt to fund artificial intelligence infrastructure and about rising competition from China. Solid numbers from chip equipment makers ASML and Aixtron and telecoms gear supplier Ericsson helped keep sentiment in the region afloat.

German semiconductor equipment group Aixtron jumped 6% on Friday after its third-quarter order intake beat forecasts and it stood by its full-year guidance. Wind turbine maker Nordex was the standout, surging 12.3% after posting stronger-than-expected quarterly core profit and lifting its annual margin outlook. Ericsson had already rallied almost 12% on Thursday on better-than-expected sales, Sharecast News reported.

Not every update was rewarded. Schneider Electric gave up early gains to trade 1.8% lower, even though the French electrical equipment maker raised its 2026 revenue and core profit targets for the second time this year. Nestle, by contrast, gained 1.7% after JPMorgan upgraded the Swiss food giant to “overweight”, helping the food and beverage sector rise 1.4%. Healthcare slipped 0.3% after advancing more than 4.6% over the previous two sessions, while technology stocks ended flat.

Capital.com senior market analyst Daniela Hathorn told Reuters the week had shown the value of diversification at a time when the crowded US tech trade is under strain. Morningstar chief equity strategist Michael Field was similarly upbeat, saying: “A very good positive earnings season is really going to boost investor sentiment.”

Inflation keeps the ECB in focus

On the macro front, final data confirmed euro zone consumer prices rose 3.8% year on year in September, in line with expectations but far above the European Central Bank’s 2% target. The ECB has lifted its key rate by a combined 50 basis points this year to 2.50%, and money markets are pricing in a further quarter-point increase in December, according to LSEG data cited by Reuters.

Separate figures showed the euro area swung to a trade deficit of €16.1 billion in August, from a €10.7 billion surplus in July, as imports grew 16.7% from a year earlier, outpacing a 9.9% rise in exports, BusinessToday reported.

What comes next for European Stocks

The reporting season moves into a busier phase next week, with German software group SAP, Swiss engineering firm ABB and British lender Barclays among the companies scheduled to report. Analysts expect third-quarter earnings for STOXX 600 companies to grow 20.7% from a year earlier, a touch below the 21% forecast a week ago, according to LSEG I/B/E/S data.

Whether European equities can keep decoupling from Wall Street’s tech weakness is likely to hinge on those results, and on how aggressively the ECB moves to contain inflation heading into its December meeting.

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