European indices edged upward as the week opened. Automotive names, often burdened by supply chain disruptions and cyclical scepticism, found themselves suddenly in favour.
The spark came from a resolution in semiconductor flows. Dutch chipmaker Nexperia, long entangled in export restrictions from China, appeared to have cleared a regulatory impasse, with shipments now reportedly resuming. For automakers tethered to just-in-time supply chains, the effect was palpable. Companies like Renault and Mercedes-Benz led the charge, each gaining more than 3% in early trading.
At a time when investor attention is pivoting toward earnings, this shift landed with unusual timing. Many European names are still to report, and the wider earnings narrative remains mixed. A French marine technology group raised its full-year guidance and climbed over 4%, while in contrast, a well-known Italian drinks maker lost ground amid renewed scrutiny over tax governance.
JPMorgan European Discovery Trust plc is an investment trust company. The Investment Trust JEDT objective is to achieve capital growth from a portfolio of quoted smaller companies in Europe, excluding the United Kingdom.
