- STOXX 600 up 0.6%
- EZ business activity declines abruptly in Nov- PMI
- Thales tanks on Anglo-French bribery investigation
- Games Workshop hits record high on upbeat HY forecast
Nov 22 (Reuters) - Tech led gains in Europe on Friday, with the benchmark stock index on track for its first weekly advance in five, as the recent selling pressure due to geopolitical tensions eased, but the mood was still sombre after discouraging economic data.
The pan-European STOXX 600 was up 0.6% as of 0915 GMT and was set for its second day of gains.
The index has lost over 4% in the past four weeks due to a combination of factors, including rising uncertainty over the Ukraine-Russia conflict, likely economic implications of U.S. President-elect Donald Trump's proposed tariffs and domestic growth-related woes.
The benchmark index is up about 5% for the year, sharply lagging the U.S. S&P 500's near 25% jump.
"The outlook for Europe compared to the U.S. is actually pretty grim," said Stefan Koopman, senior market economist at Rabobank, citing poor export and industrial demand perspectives.
Data showed euro zone business activity took a surprisingly sharp turn for the worse this month, owing to contractions in the services industry and manufacturing sinking deeper into recession.
Adding to the concerns, Germany's economy grew less than previously estimated in the third quarter, with the country set to be the worst performer among the Group of Seven rich democracies this year.
"The risk of tariffs is looming ... I can't see how the EU or Germany itself is able to negotiate (with Trump)."
Meanwhile, the tech index rose 1%, hitting a one-week high, led by chip stocks. The sector ended Thursday higher on confidence in the AI boom despite investor disappointment over U.S.-based Nvidia's revenue forecast.
Other sectors such as real estate, retail and healthcare were also up over 1% each.
Miniature wargame maker Games Workshop Group jumped 13%, hitting record highs, after an upbeat half-year forecast. Brenntag rose 4.5% after Berenberg upgraded the chemicals distributor's stock to "buy" from "hold".
Soitec extended gains for the second day, up 4.3% on Friday, after the French semiconductor materials supplier reiterated its 2025 outlook.
Thales fell 5.5% on Britain's Serious Fraud Office's (SFO) investigation of suspected bribery and corruption at the company jointly with French authorities.
French infrastructure and technology company Technip Energies fell for the second day, down 5% on Friday, after setting out its short-term and medium-term targets.
Nexans SA dropped 2.5% after the sale of a 5% stake by Chile's richest family in the French cable maker.
Reporting by Ankika Biswas in Bengaluru and Joao Manuel Mauricio in Gdansk; Editing by Eileen Soreng and Anil D'Silva
Source: Reuters