European Stocks Close at Records

European stocks rose on Friday, with the STOXX 50 gaining 0.6% and the STOXX 600 advancing 0.3% to trade near two-week highs, as concerns over AI spending amid a high-interest-rate environment eased and the previous session’s tech sell-off subsided. The technology sector rebounded into positive territory following losses in the previous session. ASML Holding added 2.1%. Traders were also keeping a close eye on fresh corporate updates. Airbus (0.6%), Siemens Energy (1.1%) and Rheinmetall (3.3%) were higher and the banking sector was among the biggest gainers, including ING (1.7%) and Intesa Sanpaolo (0.8%). In contrast, LVMH (-1.1%), Novartis (-1%), and AstraZeneca (-1.5%) were in the red. Schneider Electric fell 1.1% although the company raised its 2026 core profit and revenue targets. For the week, the STOXX 50 was down 0.9%, while the STOXX 600 gained 1.4%, putting the latter on track for its strongest weekly advance since August.

European equity markets were poised to open higher on Friday as the recent selloff in global technology stocks subsided, while investors continued to evaluate the outlook for the artificial intelligence sector. Market sentiment also improved after Federal Reserve Chair Kevin Warsh refrained from signaling an imminent interest rate hike despite hotter-than-expected US inflation data. In Europe, investors will focus on final September inflation figures for the Eurozone and Italy, alongside August trade data for the Eurozone. Automakers may also attract attention following reports that the European Union is considering a new trade instrument to counter economic pressure from China, supplementing existing tariffs and trade restrictions. In premarket trading, Euro Stoxx 50 futures rose 0.7%, while Stoxx 600 futures advanced 0.4%.

European stocks closed mixed on Thursday, reflecting similar developments in North America, as plunges in AI infrastructure and heavyweight lenders offset strong performances elsewhere. The Euro STOXX 50 fell 0.4% and the STOXX Europe 600 rose 0.3% to 640. Industrial production in the Eurozone unexpectedly fell at a sharp pace in August, injecting fresh concerns that the bloc's economy may start to feel a bigger impact from higher energy prices, interest rates, and cheap Chinese exports that drove major economies to campaign in Brussels for tariffs and quotas. ASML sank 4.2% and Infineon dropped 5.2%, tracking the global chip sector following slower revenue growth from Anthropic. Meanwhile, Nordea tanked 7.8% after a quarter of lower profits drove the bank to pause its share buyback. On the other hand, L'Oreal, SAP, Rheinmetall, and Wolters Kluwer rose by up to 4.5%.