European shares head for best week since June on earnings and tech stabilisation
The STOXX 600 hit a more than three-week high as earnings beat and tech stocks steadied. Eurozone inflation held at 3.8%, keeping ECB rate-hike bets alive.
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what happened
According to Reuters, European stock markets were on track for their biggest weekly gain since late June. By 0922 GMT the STOXX 600 index had risen 0.56% to 643.64 points, reaching a high not seen in more than three weeks. For the week, the index was up more than 1.8%.
Strong quarterly results from European companies and signs of stability in technology shares supported the market. Earlier in the week, high-flying tech names had sold off over worries about Chinese competition and rising debt funding for AI infrastructure. Earnings for STOXX 600 firms are expected to rise 20.7% year on year in the third quarter. Aixtron and Nordex both gained after their reports, and the tech sector rose 1%.
The eurozone's final HICP reading for September was 3.8% year on year, in line with forecasts but far above the ECB's 2% target. The central bank has raised rates by 50 basis points this year, to 2.50%. Investors are already pricing in another quarter-point hike at the December meeting.
why it matters
Strong earnings combined with a hawkish ECB keeps the market sensitive to new inflation data. Higher rates raise borrowing costs and can weigh on capital-intensive and debt-heavy sectors, while this week's rally suggests investors are still prioritising corporate profits.
market impact
European equities: strong earnings support indices, while expectations of another ECB hike cap gains
tags
instruments
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