European equities spent the week caught between political noise, bond-market pressure, and a few genuine bright spots.
The DAX opened the week trying to bounce off a weak prior run, but research flagged rising headwinds: international investors are said to be sidelined on German equities amid political uncertainty after regional election setbacks, while a global bond selloff and higher yields added risk-off pressure mid-week. One contrarian macro view went further, arguing Germany is stuck in a stagflationary regime and should keep underperforming.
Not all bearish, though. Eurozone PMIs pointed to the strongest growth since April 2023, which analysts framed as a cautious positive for regional equities.
Single-name calls skewed mixed. Novo Nordisk drew a negative take after a poorly received Capital Markets Day raised concerns about over-reliance on obesity drugs. HelloFresh was flagged lower on a guidance cut, and Allianz's chart was said to be deteriorating. On the constructive side, Schneider Electric and Rolls-Royce were highlighted as structural winners from grid modernization, AI power demand, and defense spending.