European equities had a strong week, but late-week research turned more divided on whether the rally has legs.
Mid-week, analysts highlighted a broad risk-on move: the FTSE 100 rose 2.1%, the Euro Stoxx 50 closed up nearly 2%, and the DAX surged 1.7% to around 24,400, helped by eased Middle East tensions, a global chip rally (Infineon +8%), and standout earnings from Anheuser-Busch InBev (+9.3%). Several research notes framed Europe as a "low-vol bull" participant alongside US indices.
Structural calls leaned bullish on demographics-linked names — Nestlé, Roche, AstraZeneca, Haleon and Reckitt — and on Europe's defence cycle via Rheinmetall, with Siemens Energy flagged as an electrification winner and Novo Nordisk eyed for a technical breakout.
By Thursday and Friday, the published consensus shifted more cautious: multiple analysts pointed to heavy institutional selling of European stocks, FTSE defence names softening on US-Iran progress, Shell pressured after trimming buybacks, and concerns over Eurozone profit resilience and tariff risk.