European shares end best week since June as strong earnings lift sentiment
Analysts also point to structural tailwinds that could boost Europe’s prospects in the long term
Published Sat, Nov 14, 2026 · 07:44 AM
EUROPEAN shares were little changed on Friday (Nov 13), but recorded their best week since late June as strong earnings and a rotation out of tech globally helped investors look past geopolitical risks and the volatility involving artificial intelligence stocks.
The Stoxx 600 closed flat at 664.14 points, and gained over 2 per cent for the week. Heavyweight Euro Stoxx banks index rose over 4 per cent this week and led broader gains.
Robust earnings, along with a fall in oil prices on hopes of a potential easing of the US-Iran conflict earlier this week, helped the STOXX 600 breach record-high levels for the first time since August on Thursday.
Analysts also pointed to structural tailwinds that could boost Europe’s prospects in the long term.
“Europe is building its rearmament program, its industrial program, strategic autonomy, its energy infrastructure and its defence,” said Jitania Kandhari, deputy CIO, Solutions & Multi-Assets at Morgan Stanley Investment Management.
“That is trickling into different pockets of the economy and the markets now. When investment in capex picks up, it has spillover effects,” she said.
Mirroring the optimism, Goldman Sachs raised its 12-month target for the Stoxx 600 to 700 points from 695.
Tech loses steam
On Friday, the tech sector fell 1.3 per cent, leading losses.
Uncertainty over the outlook for the AI trade rippled through global markets following Jensen Huang’s abrupt resignation as Nvidia’s CEO, as investors fretted about the future of the AI Goliath that has underpinned much of the rally in global markets.
SEE ALSO
Chip stocks such as Infineon and Aixtron were down more than 4 per cent each, while AI equipment makers such as Schneider Electric and Legrand were also lower.
Adding to caution, crude prices swung in the session as Washington’s focus on blockading Iran and ramping up other economic pressures allayed fears of renewed direct conflict in the Middle East.
Investors also weighed some corporate earnings on Friday.
Wise Group gained 7.7 per cent to top the benchmark index after the money transfer company reported a 23 per cent net revenue rise in the first half of its fiscal year.
In contrast, Richemont fell 3.8 per cent after the Cartier owner reported weaker-than-expected sales in its jewellery unit during the second quarter.
Acciona fell 8 per cent, languishing at the bottom of the index after subsidiary Acciona Energia said it would not meet its 2 billion euros (US$2.21 billion) target for its asset rotation programme.
On the data front, the eurozone economy grew by 0.4 per cent quarter-on-quarter in the third quarter, according to a flash gross domestic product estimate from the EU’s statistics agency. REUTERS
