Europe’s STOXX 600 tech stocks rebound to end the week higher

Europe’s STOXX 600 ended higher on Friday, as tech stocks staged a strong comeback from a bullish weekend, while European Central Bank rate cuts and a jump in corporate earnings helped the index post a second straight week of gains.

The STOXX 600 closed up 0.2% as the tech sector gained 2%.

It pared weekly losses for the tech index to 6%, but remained the worst-performing sector this week after ASML’s weak 2025 sales forecast triggered a rout in chip stocks globally.

Shares of the computer chip equipment maker rose 1% on Friday, while chip stocks Soitec SA and BE Semiconductor Industries were up 5.6% and 2.8%, respectively.

Basic Resources shares climbed 1.4%, led by stronger copper prices.

The luxury stocks index rose 1.1% after a sell-off earlier this week following weak third-quarter sales from LVMH.

Along with LVMH, other luxury giants such as Gucci-owner Kering and Hermès rose 3.5% and 1% respectively, helping France’s main CAC 40 index rise 0.4%.

Brunello Cucinelli rose 2.6% following the Italian luxury group’s strong nine-month revenue performance.

However, brokerage Goldman Sachs cut its 2024 earnings growth forecast for Europe’s STOXX 600 index to 2% from 6%, citing risks from rising corporate taxes and potential trade tariffs.

On the policy front, the ECB on Thursday trimmed its interest rates to 3.25%. A fourth cut is likely in December, unless key data turns south by then, sources told Reuters.

The STOXX index hit multiple record highs earlier this year, but has struggled to make any gains since mid-May as sluggish economic growth and weak Chinese demand deterred investors, despite European stocks trading at cheaper valuations than their US peers.

“The particular point of vulnerability for Europe is that economic damage looks more dangerous than in the US, so the trend is slower growth and you’re more vulnerable to downside risks and shocks,” said Daniel Murray, deputy CIO. Global Head of Research at EFGAM.

Alyssa fell 4.7% after the Finnish telecom company’s third-quarter revenue missed expectations, while Swedish medical equipment maker Gettingen fell 5% after missing a key third-quarter earnings forecast.