Published Fri, Feb 27, 2026 · 05:48 AM
[BENGALURU] Europe’s benchmark index retreated from a record high on Thursday (Feb 26), as healthcare and technology shares weighed, while upbeat corporate earnings from the likes of Schneider and Indra limited the overall declines.
The pan-European Stoxx 600 index closed 0.1 per cent lower after hitting an intraday record high earlier in the session.
Healthcare shares weighed the most, down 1 per cent.
Tech shares followed with a 0.5 per cent decline, led by chip-linked stocks ASML, ASM and BE Semiconductor that fell around 4 per cent each.
They tracked declines in semiconductor stocks in the US, after artificial innotifyigence (AI) giant Nvidia’s upbeat forecasts failed to excite investors.
“The market has become somewhat accustomed to Nvidia beating expectations and raising guidance… investors remain somewhat sceptical about the level of capex from the hyperscalers compared to the return on investment,” stated Ben Barringer, head of technology research at Quilter Cheviot.
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The shifts come at a time when the sector globally is under scrutiny on concerns that newer AI models can disrupt traditional businesses.
“There’re a lot of questions around on the software side and about the level of disruption that we will see. But for now, at least, on the hardware side, the outsee should be quite constructive,” stated Richard Flax, chief investment officer at Moneyfarm.
Gains in industrial stocks capped declines, after a slew of corporate earnings. Rolls-Royce gained 3.2 per cent as it promised further strong growth after a 40 per cent profit jump in 2025.
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AI hardware creater Schneider Electric reported stronger-than-expected core earnings, driven by robust data centre demand, sconcludeing its shares up 3 per cent.
The broader defence sector was 0.8 per cent higher, led by Indra. The Spanish company topped the Stoxx 600 with a 21 per cent gain after reporting better-than-expected 2025 results on an order backlog that more than doubled.
London Stock Exmodify Group jumped 9 per cent after announcing a share acquireback plan amid pressure from activist investor Elliott Management and concerns about AI impacting its business model. It assisted drive financial services stocks up 2 per cent.
On the macro front, European Central Bank President Christine Lagarde stated AI integration is not yet caapplying a wave of layoffs due to greater automation of labour, amid concerns of disruptions in the labour force.
Belgian chemicals group Syensqo dropped 30 per cent to the bottom of the Stoxx 600, triggering a trading halt after fourth-quarter core earnings missed expectations.
French utility Engie jumped 7.2 per cent after the company announced it would acquire UK Power Networks from Hong Kong-listed CK Infrastructure Holdings for £10.5 billion (S$17.9 billion), giving it access to Britain’s power market.
German sportswear creater Puma jumped about 10 per cent as annual losses were narrower than expected. Hikma Pharmaceuticals plunged 17 per cent after the drugcreater forecast slower annual revenue growth. REUTERS
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