European equities ended the week on firmer footing, with researchers highlighting a broadening Eurozone recovery even as the AI trade wobbled midweek.
September PMI data cited by analysts pointed to accelerating activity across technology, capital goods, aeronautics, consumer goods and financials, with computer and electronics production hitting a five-year high. Several strategists argued the region's structural shifts — energy independence, reshoring, and higher defence spending — should support a multi-year case for European stocks, partially decoupling returns from US AI-led growth.
The AI complex itself had a rougher ride. After a disappointing US inflation print midweek, commentary flagged sharp pressure on AI-linked names in Frankfurt including Infineon, Siemens Energy, Siltronic and Aixtron. By Friday, however, sentiment steadied, with the DAX reclaiming ground and ASML's capacity commentary cited as reinforcing a constructive medium-term semiconductor view.
Elsewhere, researchers flagged UK resilience via stronger GDP, upside in Greek and Portuguese names, and Spanish housing tightness, while one note warned of fresh China-Europe trade friction in autos and AI electronics.