FRANKFURT: Europe’s benchmark index retreated from a record high on Thursday, as healthcare and technology shares weighed, while upbeat corporate earnings from the likes of Schneider and Indra limited the overall declines.
The pan-European STOXX 600 index closed 0.1 percent lower after hitting an intraday record high earlier in the session.
Healthcare shares weighed the most, down 1 percent.
Tech shares followed with a 0.5 percent decline, led by chip-linked stocks ASML, ASM and BE Semiconductor that fell around 4 percent each.
They tracked declines in semiconductor stocks in the US, after AI giant Nvidia’s upbeat forecasts failed to excite investors.
“The market has become somewhat accustomed to Nvidia beating expectations and raising guidance… investors remain somewhat sceptical about the level of capex from the hyperscalers compared to the return on investment,” said Ben Barringer, head of technology research at Quilter Cheviot. The moves come at a time when the sector globally is under scrutiny on concerns that newer AI models can disrupt traditional businesses.
“There’re a lot of questions around on the software side and about the level of disruption that we’ll see. But for now, at least, on the hardware side, the outlook should be quite constructive,” said Richard Flax, chief investment officer at Moneyfarm.
Gains in industrial stocks capped declines, after a slew of corporate earnings. Rolls-Royce gained 3.2 percent as it promised further strong growth after a 40 percent profit jump in 2025.
AI hardware maker Schneider Electric reported stronger-than-expected core earnings, driven by robust data centre demand, sending its shares up 3 percent.
The broader defence sector was 0.8 percent higher, led by Indra. The Spanish company topped the STOXX 600 with a 21 percent gain after reporting better-than-expected 2025 results on an order backlog that more than doubled.