Latest News

European shares are down as miners and luxury stocks weigh.

European shares are down as miners and luxury stocks weigh.
European shares are down as miners and luxury stocks weigh.

The European share market was subdued Friday due to weakness in mining and luxury stocks. This marked a gloomy end to a week that had been dominated by?the beginning of a busy earning season along with geopolitical concerns.

The pan-European STOXX 600 index finished at 614.38, while the luxury index fell 3.2%. This was its largest daily drop since early October.

Richemont, one of the biggest losers, fell 5.4%, after BofA Global Research cut its recommendation for the Swiss jewellery firm to neutral from buy, and advised investors to "wait", citing inflated valuations following a recent rally.

"European stocks are not cheap, but neither are they expensive." Michael Field, Morningstar's chief European equity analyst, said that the margin of safety investors previously had is no longer there.

The STOXX 600 still posted its fifth consecutive weekly gain. This is its longest winning streak, dating back to May 2025.

As prices of precious metals, crude oil and other safe-haven commodities soared in recent days due to geopolitical tensions in Venezuela and Iran, the index reached multiple records.

These tensions seemed to have abated on Friday, with mining stocks falling 1.9%.

Richard Flax is the chief investment officer at Moneyfarm.

Defence stocks gained 1% and helped to limit the losses in the STOXX Index.

Analysts said that the weight-loss drug Wegovy had made an "encouraging start" after its launch in this month. The healthcare index rose 0.6%.

The British health regulator has approved a higher dosage of Wegovy to treat obesity patients, and Berenberg has also increased its price target for the stock.

This week, we've seen a variety of earnings reports from companies like BP, BE Semiconductor and?Richemont. According to LSEG, fourth quarter earnings are expected to drop 4.1% compared to a year ago. Consumer cyclicals will be the hardest hit.

HSBC shares dipped 0.4%. The lender announced that it would be undertaking a strategic review to streamline its global operations.

The Norwegian defence equipment manufacturer's shares rose 9.5% on Friday after two brokerages raised their price targets. Reporting by Niket Nishant, Avinash P, and Johann M Cherian from Bengaluru. Editing by Mrigank Dahniwala and Devika Syamnath.

(source: Reuters)