Europe: Shares close out best week since June as earnings soften blow from tech sell-off

Published Sat, Oct 17, 2026 · 08:28 AM

[BENGALURU] European shares rose on Friday (Oct 16) to wrap up their best week since late June, during which strong earnings helped cushion the blow from a global sell-off in technology stocks.

The pan-European Stoxx 600 index rose 0.7 per cent to 644.74 points, touching the highest in over three weeks. The benchmark was up more than 2 per cent for the week.

“This week has demonstrated the value of diversification when the concentrated US technology trade comes under pressure,” said Daniela Hathorn, senior market analyst at Capital.com.

A sell-off in high-flying tech names on concerns over increased reliance on debt to develop AI infrastructure, alongside worries about competition from China, battered tech stocks this week.

However, strong results from computer chip equipment maker ASML, chip systems supplier Aixtron and telecom gear maker ​Ericsson have helped sentiment.

“A very good positive earnings season is really going to boost investor sentiment. It could move markets back up to some of the highs that we’ve seen recently,” said Michael Field, chief equity strategist at Morningstar.

Earnings for Stoxx 600 companies are expected to rise 20.7 per cent in the third quarter from a year earlier, slightly down from the 21 per cent growth forecast last week, data from LSEG I/B/E/S showed.

SAP, ABB and Barclays are some of the firms due to report results next week.

Aixtron advanced 6 per cent after beating order intake estimates for the third quarter and confirming annual guidance.

Nordex soared 12.3 per cent after the onshore wind turbine maker posted a better-than-expected third-quarter core profit and lifted its full-year margin forecast.

Schneider Electric shares reversed earlier gains and were last down 1.8 per cent after the industrial group raised its 2026 core profit and revenue targets for the second time.

The tech sector was flat while the healthcare sector eased 0.3 per cent after gaining more than 4.6 per cent over the previous two sessions.

Among other movers, Nestle gained 1.7 per cent after JPMorgan upgraded the Swiss food and drinks group to an “overweight” rating.

The gains propped up the F&B index, which rose 1.4 per cent.

The eurozone’s final Harmonised Index of Consumer Prices inflation reading for September came in at 3.8 per cent year on year, in line with economists’ expectations but well above the European Central Bank’s (ECB) 2 per cent target, showing price pressures still need to be tamed.

ECB raised borrowing rates by 50 basis points in 2026 to 2.5 per cent, to curb price pressures stemming from higher oil prices.

Investors are already pricing in another quarter-point rate hike at a December meeting, according to data compiled by LSEG. REUTERS