European shares close out best week since June as earnings soften blow from tech selloff
European shares rose 0.7% on Friday, ending their best week since June. Strong earnings from ASML, Aixtron, and Ericsson offset a tech selloff. STOXX 600 companies' Q3 earnings are expected to rise 20.7% YoY. Aixtron and Nordex gained 6% and 12.3% respectively, while Schneider Electric fell 1.8%. Eurozone inflation remained high at 3.8% YoY.
How this was made
The 30-second read
Why it matters
The piece is a market wrap with several company-specific catalysts (beats, guidance raises, analyst upgrade) that can drive near-term trading and event positioning, but it lacks deep new quantitative detail for most scheduled reporters.
Market read
Friday’s close and the cited company-specific earnings catalysts can inform next-week positioning, while ECB inflation and rate-hike expectations remain a headwind for valuation.
What to watch
The article flags macro pressure from sticky inflation and ECB rate-hike expectations, which can cap equity multiples even when company earnings beat.
Background
European equities rebounded as strong earnings from select tech-adjacent names offset a broader global selloff in high-flying US tech.
Ticker impact
Article cites strong results from chip equipment maker ASML as a key factor supporting European tech sentiment this week.
Mild upward bias as the market prices in continued strength in semiconductor capex and equipment demand.
The piece links ASML’s strong results to improved sentiment during a broader tech selloff, but provides no new ASML-specific numbers beyond the qualitative “strong results.”
Ericsson is named among strong performers whose results helped cushion the tech selloff.
Moderately positive bias, though direction likely limited without new Ericsson-specific figures in the text.
The article attributes sentiment improvement to Ericsson’s strong results but does not provide new Ericsson metrics or guidance details.
SAP is named as another company due to report results next week, relevant for positioning after the tech selloff.
Uncertain until the report; likely higher implied volatility into the event.
No SAP-specific results, guidance, or estimates are disclosed, only the schedule.
Schneider Electric shares fell after reversing earlier gains following a second raise to 2026 core profit and revenue targets.
Likely choppy, with the market balancing raised guidance against expectations already priced in.
The article reports a concrete guidance raise (second time) but also notes the stock ended down 1.8%, implying expectations or other factors offset the headline.
Market effects
Semiconductor equipment and telecom gear earnings are acting as a stabilizer for European tech sentiment amid AI capex and China-competition concerns.
Supports a broader European risk-on tone, with the STOXX 600 ending the week higher despite ongoing tech weakness.
Read-through to global semiconductor capex expectations and AI infrastructure spending sentiment, which can influence US and Asia tech complex positioning.
Counterpoint
The rally may be more about earnings cushioning than a true reversal in AI infrastructure demand concerns, so upside could fade if next-week guidance disappoints.
Key entities
- companyASML
Chip equipment maker cited for strong results supporting sentiment.
- companyAixtron
Beats order intake estimates and confirms annual guidance; shares up 6%.
- companyEricsson
Strong results cited as a cushion for tech sentiment.
- companyNordex
Beats core profit and lifts full-year margin forecast; shares up 12.3%.
- companySchneider Electric
Raised 2026 core profit and revenue targets for the second time; shares ended down 1.8%.
