European Stocks Erase Drop as Big US Rally Pulls Indexes Higher
(Bloomberg) — European stocks erased declines, with indexes getting a boost from the recovery in US markets and L’Oreal SA’s better-than-expected earnings.
The Stoxx Europe 600 Index ended the session with a 0.3% gain. L’Oreal provided the biggest single boost to the gauge, rising 6.3%, after the cosmetics maker’s earnings beat expectations. Mining stocks also advanced, while health care and technology sectors lagged.
While European stocks had struggled early in the session, they gained momentum in the afternoon as a rally in US tech stocks pushed the S&P 500 up more than 2%. Stocks moved higher after US Treasury Secretary Scott Bessent said he expects tariff tensions with China to de-escalate.
Shares in Novo Nordisk A/S slumped 7.4% after news on Friday that Eli Lilly & Co.’s experimental pill helped patients shed weight and control blood sugar about as well as the Danish company’s Ozempic drug.
Among other single stocks, European electrification companies including Schneider Electric SE underperformed after an analyst at Wells Fargo Securities said Amazon.com Inc.’s web services business is pausing some data center leases. Meanwhile, shares in Swiss insurers Helvetia Holding AG and Baloise Holding AG rose after the pair agreed to combine, forming Switzerland’s second-largest insurance group.
Focus will turn later to the first-quarter earnings of SAP SE in Europe and Tesla Inc. in the US.
Among other stock movers, Orsted AS fell 4.8% after Bank of America and Barclays downgraded the stock.
For more on equity markets:
- Things Might Get Tougher for Banks From Here: Taking Stock
- M&A Watch Europe: BPM, Baloise, Biotage, TF1, M6, Exmar
- US Stock Futures Fall; Zions, MongoDB, Boeing, Apple Fall
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–With assistance from Kit Rees.
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