FRANKFURT: European shares hit their highest in more than two weeks on Thursday, helped by solid earnings and a surge in healthcare stocks which have emerged as a refuge for global investors when the AI trade fades.
Shares of Ericsson rose 6.8 percent and were the top gainer on the benchmark after the Swedish telecom gear maker reported better-than-expected third-quarter results.
Investors have pinned their hopes on a robust earnings season to pull the STOXX 600 out of the narrow range it has been confined to over the past month.
On Thursday, the pan-European STOXX 600 index rose 0.38 percent to 640.16 points after hitting its highest since September 30 earlier in the session.
The healthcare index rose 2.4 percent and was among the top gainers on the benchmark. Technology shares lost 1.5 percent and led declines, dragged down by German chip systems manufacturer Aixtron’s 13 percent drop.
Chip stocks Infineon and Soitec fell 5.2 percent and 7.7 percent, respectively, while chip equipment maker ASML dropped 4.2 percent.
Tech stocks across the globe were rattled after hot US inflation data on Wednesday stoked fears of further Federal Reserve rate hikes, hitting companies that rely on debt to fund AI infrastructure build-outs.
“The CPI pressure is still with us and that is triggering some more fear on long-duration stocks, for techs, and also on their financing,” Michele Morganti, senior equity strategist at Generali Investments, said.
Mondi tumbled 7.9 percent after the paper and packaging firm said it raised prices for several paper grades in the third quarter to offset energy and raw material costs.
Antofagasta slid 4.1 percent after the miner reported copper production of 436,900 tons year to date, down 8.3 percent from the same period in 2025.