Pharma shifts and tech resilience shape a new mood in European equities

Fidelity European Trust

A fresh jolt of energy coursed through European equities as pharma shakeups and a rebound in technology stocks steered sentiment upward. The rebound was sufficiently coordinated to lift indexes modestly across the region, with Britain’s FTSE 100 up about 0.5%, and France’s CAC 40 and Germany’s DAX each climbing some 0.3%. The STOXX 600 eked out a gain of roughly 0.2% on the day, led by healthcare and tech sectors.

At the heart of the move: unexpected corporate developments in pharmaceuticals. GSK surged 3.3% after announcing that CEO Emma Walmsley will step down. AstraZeneca also rallied, unveiling plans to list ordinary shares in New York (while retaining its UK base).

Major names in the tech sector rallied about 0.6%, buoyed by global chip news and a clearer demand narrative in semiconductors and related industries.

The real attention-grabber was Lufthansa’s bold cost-cutting announcement. The airline revealed plans to eliminate 4,000 administrative roles by 2030, alongside a target of achieving an 8–10 percent operating margin by 2028. Management presented the initiative as a needed reset to restore margins and cash flow. Markets responded positively, interpreting the move as a credible commitment to efficiency, especially given the cyclical headwinds in aviation.

Fidelity European Trust PLC (LON:FEV) aims to be the cornerstone long-term investment of choice for those seeking European exposure across market cycles.

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