European shares rose on Friday and were on track for their biggest weekly gain since August, supported by strong corporate earnings and signs of stabilisation in global technology stocks following a selloff earlier in the week, according to a Reuters report.
The pan-European STOXX 600 index climbed 0.3% to 641.75 points by 0708 GMT, trading near its highest level in more than two weeks. The benchmark was up more than 1% for the week.
Industrials led the gains, rising 0.7%, as investors welcomed upbeat earnings and improved corporate outlooks. Schneider Electric advanced 1.4% after the industrial group raised its 2026 core profit and revenue targets for the second time, signalling confidence in its business prospects, the report stated.
Chipmaker Aixtron gained 4.8% after reporting third-quarter order intake above market expectations and reaffirming its annual guidance, further supporting sentiment across the technology supply chain.
According to Reuters, robust earnings from European companies helped stabilise markets after a volatile week marked by a selloff in high-growth technology stocks. Concerns over intensifying competition from Chinese companies and the rising use of debt to finance artificial intelligence infrastructure had weighed on investor appetite for technology shares.
The retreat in technology stocks had raised questions about valuations and the sustainability of spending on artificial intelligence infrastructure, particularly as companies commit substantial capital to expanding computing capacity. Signs of stability in battered technology shares helped ease some of the pressure on broader equity markets.
Investors were also looking ahead to eurozone Harmonised Index of Consumer Prices (HICP) inflation data due later on Friday for fresh clues about the region's inflation outlook and the potential implications for European Central Bank monetary policy.
Elevated oil prices have heightened concerns about renewed inflationary pressures, complicating the outlook for interest rates and economic growth. The latest inflation figures could help investors assess whether energy-related price pressures are easing.
With the STOXX 600 approaching recent highs, market participants are likely to remain focused on incoming economic data, corporate earnings and developments in global technology stocks to determine whether the recovery in European equities can be sustained.
