European shares hit more than two-week high as sturdy earnings lift sentiment

[BENGALURU] European shares hit their highest in more than two weeks on Thursday (Oct 15), helped by solid earnings and a surge in healthcare stocks, which have emerged as a refuge for global investors when the artificial intelligence trade fades.

Shares of Ericsson rose 6.8 per cent and were the top gainer on the benchmark after the Swedish telecom gear maker reported better-than-expected third-quarter results.

Investors have pinned their hopes on a robust earnings season to pull the Stoxx 600 out of the narrow range it has been confined to over the past month.

On Thursday, the pan-European Stoxx 600 index rose 0.4 per cent to 640.16 points after hitting its highest since Sept 30 earlier in the session.

The healthcare index rose 2.4 per cent and was among the top gainers on the benchmark. Technology shares lost 1.5 per cent and led declines, dragged down by German chip systems manufacturer Aixtron’s 13 per cent drop.

Chip stocks Infineon and Soitec fell 5.2 per cent and 7.7 per cent, respectively, while chip equipment maker ASML dropped 4.2 per cent.

Tech stocks across the globe were rattled after hot US inflation data on Wednesday stoked fears of further Federal Reserve rate hikes, hitting companies that rely on debt to fund AI infrastructure build-outs.

“The CPI pressure is still with us and that is triggering some more fear on long-duration stocks, for techs, and also on their financing,” Michele Morganti, senior equity strategist at Generali Investments, said.

Mondi tumbled 7.9 per cent after the paper and packaging firm said it raised prices for several paper grades in the third quarter to offset energy and raw material costs.

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European shares edge up after solid ASML results, healthcare gains

Antofagasta slid 4.1 per cent after the miner reported copper production of 436,900 tons year to date, down 8.3 per cent from the same period in 2025.

The drop, along with weaker copper prices, pulled the mining sector down 0.8 per cent.

Separately, data showed that consumer prices in France ​rose 3.4 per cent year-on-year ‌in September on an EU-harmonised basis, ⁠in line ​with a preliminary ​reading from late September.

Traders see an 87 per cent chance that the European Central Bank will deliver a quarter-point rate hike in December, according to LSEG data, after it raised rates twice earlier this year to tackle inflation driven by higher energy prices.

“The inflation rates in Europe are reflective of energy problems and industrial bottlenecks. When you have these kinds of problems, you actually need more capital in the system to try to address some of them,” said James Rasteh, co-founder and chief investment officer at Coast Capital Management.

The World Economic Forum could appoint Christine Lagarde as its next chair as soon as next month, four people close to the organisation told Reuters, meaning she would step down early as ECB chief and trigger a wider reshuffle at the top of the central bank. REUTERS