FRANKFURT: European shares rose on Friday to wrap up their best week since late June, during which strong earnings helped cushion the blow from a global selloff in technology stocks.
The pan-European STOXX 600 index rose 0.7 percent to 644.74 points, touching the highest in over three weeks. The benchmark was up more than 2 percent for the week.
“This week has demonstrated the value of diversification when the concentrated US technology trade comes under pressure,” said Daniela Hathorn, senior market analyst at Capital.com.
A selloff in high-flying tech names on concerns over increased reliance on debt to develop AI infrastructure, alongside worries about competition from China, battered tech stocks this week.
However, strong results from computer chip equipment maker ASML, chip systems supplier Aixtron and telecom gear maker Ericsson have helped sentiment.
“A very good positive earnings season is really going to boost investor sentiment. It could move markets back up to some of the highs that we’ve seen recently,” said Michael Field, chief equity strategist at Morningstar.
Earnings for STOXX 600 companies are expected to rise 20.7 percent in the third quarter from a year earlier, slightly down from the 21 percent growth forecast last week, data from LSEG I/B/E/S showed.
SAP, ABB and Barclays are some of the firms due to report results next week.
Aixtron advanced 6 percent after beating order intake estimates for the third quarter and confirming annual guidance.
Nordex soared 12.3 percent after the onshore wind turbine maker posted a better-than-expected third-quarter core profit and lifted its full-year margin forecast.
Schneider Electric shares reversed earlier gains and were last down 1.8 percent after the industrial group raised its 2026 core profit and revenue targets for the second time.
The tech sector was flat while the healthcare sector eased 0.3 percent after gaining more than 4.6 percent over the previous two sessions.
Among other movers, Nestle gained 1.7 percent after JPMorgan upgraded the Swiss food and drinks group to an “overweight” rating.