Finance
European shares recover from three-week lows, but weekly momentum fizzles
Published by Global Banking and Finance Review
Posted on September 26, 2025
3 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on September 26, 2025
3 min readLast updated: January 21, 2026
European stocks recover from lows with gains in financials and industrials, but weekly momentum remains weak amid tariff concerns.
By Shashwat Chauhan and Amir Orusov
(Reuters) -European stocks clawed their way back from three-week lows on Friday, lifted by gains in financials and industrials, leaving the benchmark index more or less where it began the week.
The pan-European STOXX 600 rose 0.8%, and ended the week just 0.07% higher.
Spanish stocks outperformed other regional markets, rising 1.3% to close at a more than one-week high, with other major indexes also in positive territory.
Germany's Munich Re and France's SCOR led European insurer stocks 2.1% higher, snapping a three-day losing streak.
The construction and materials sector gained 1.1%, with Ireland's Kingspan up 1.2% after brokerage Citigroup raised its price target.
Shares of steel producers also rose after German business daily Handelsblatt reported that the European Commission plans to impose tariffs of 25% to 50% on Chinese steel and related products.
The world's second-largest steelmaker ArcelorMittal was up 2.6%, while Aperam rose 2.2%. Germany's Thyssenkrupp added 3.5% and Salzgitter gained 5.2%.
TARIFFS BACK IN FOCUS
Healthcare stocks reversed earlier losses to end flat, a day after U.S. President Donald Trump announced a new round of punishing tariffs, including a 100% import duty on branded drugs.
"It was already priced in," said Nabil Milali, multi-asset & overlay portfolio manager at Edmond de Rothschild Asset Management in Paris.
"A lot of investors were expecting these kinds of tariffs and it was partly reflected in valuations in the healthcare sector."
The sector is one of the worst performers in Europe so far this year, with a sharp decline in weight-loss drugmaker Novo Nordisk one of the biggest drags.
Trump also announced a 25% levy on heavy-duty trucks, pushing the shares of Daimler Truck and Traton down more than 2% each.
U.S. inflation data in line with expectations eased fears that sticky price pressures could see the Federal Reserve delay rate cuts. Markets had been banking on aggressive easing this year but resilient economic indicators have tempered the optimism. Traders now expect about 39 basis points of cuts by December — a slight pullback from earlier bets of over 40 bps, according to LSEG data.
UK's InterContinental Hotels Group gained 4% after JPMorgan double upgraded its rating to "overweight" from "underweight".
Italian fashion group Brunello Cucinelli extended Thursday's losses by another 1.7%, rocked by a report from short-seller Morpheus Research.
Lufthansa rose 1.6% after a Reuters report said the airline is expected to announce several thousand job cuts on Monday.
(Reporting by Shashwat Chauhan in Bengaluru and Amir Orusov in Gdansk; Editing by Harikrishnan Nair, Kirsten Donovan)
European stocks rose due to gains in financials and industrials, with the pan-European STOXX 600 increasing by 0.8%.
The steel producers' sector saw gains after reports of potential tariffs on Chinese steel, with ArcelorMittal rising by 2.6%.
U.S. inflation data that aligned with expectations eased fears about the Federal Reserve delaying rate cuts, impacting market sentiment.
Healthcare stocks reversed earlier losses to end flat, as investors had already priced in the new tariffs announced by U.S. President Trump.
InterContinental Hotels Group's shares gained 4% after JPMorgan upgraded its rating from 'underweight' to 'overweight'.
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