European Markets End the Week Lower, Technology and Healthcare Lead Declines

The pan-European STOXX 600 index dropped 0.5% on Friday, heading toward its fourth consecutive weekly decline as technology and healthcare stocks led the losses. The index remained close to a three-month low, reflecting a week of negative sentiment and disappointing sector performance.

The technology sub-index fell by 1.7%, with chipmaker ASML among the biggest losers. This followed a weak forecast from U.S.-based Applied Materials, which projected lower-than-expected first-quarter revenue, signaling sluggish demand for chipmaking equipment beyond AI-focused chips.

Healthcare stocks were hit even harder, shedding 2.1%. Danish biotech firm Bavarian Nordic saw its stock plunge 17% after reporting third-quarter core profits below expectations and forecasting weaker order volumes for 2025. European vaccine makers like Sanofi and GSK also saw declines of 2.9% and 2.2%, respectively, after U.S. President-elect Donald Trump announced plans to appoint vaccine skeptic Robert F. Kennedy Jr. to lead the Department of Health and Human Services. The Swiss market, heavily weighted with healthcare firms, also slipped by 0.8%.

This week’s market volatility was exacerbated by concerns over U.S.-China relations, as Trump was rumored to be considering a China hawk for secretary of state, and disappointing corporate earnings. Negative sentiment from a lower Wall Street close also weighed on European markets after Federal Reserve Chair Jerome Powell signaled there was no urgency to lower interest rates.

Meanwhile, economic data showed Britain’s economy contracted in September, with slower third-quarter growth, and inflation figures from France and Italy were slightly revised. French consumer prices rose 1.6% year-on-year in October, while Italy’s EU-harmonized consumer prices increased 0.3% month-on-month and 1.0% annually.

In positive news, German drug developer Evotec’s stock soared nearly 20% after Halozyme Therapeutics announced a €2 billion acquisition proposal. Additionally, Italian insurer Generali gained 5.5% as it posted strong nine-month profits, despite significant losses from natural disasters.