Global week ahead: Tech rotation puts European stocks back in play

• Stoxx 600 recorded its 7th positive week in eight and sits near record highs, contrasting sharply with the tech-driven decline in U.S. markets that Deutsche Bank is comparing to the 2000 dot-com bubble
• UniCredit remains active in European banking M&A with minority stakes in Commerzbank and Alpha Bank generating approximately 20 percent returns, though Commerzbank's CEO calls a merger 'not sensible' given valuations
• AstraZeneca is targeting China's weight-loss drug market while L'Oreal raised 3 billion euros for M&A financing and recently doubled its stake in Swiss dermatology firm Galderma

Market Summary: European Stocks Show Resilience Amid Tech Rotation

Key Market Developments:

European equities are demonstrating unusual resilience while U.S. markets face significant pressure. The Stoxx 600 remains near record highs after posting its 7th positive week in eight, contrasting sharply with American tech stocks. The S&P 500 has plunged nearly 30% from October 2025 peaks, with Deutsche Bank drawing comparisons to the 2000 dot-com bubble amid an intensifying AI and software stock sell-off.

Major Earnings This Week:

Banking Sector: UniCredit reports Monday, with CEO Andrea Orcel highlighting the bank's M&A activity, including minority stakes in Commerzbank and Alpha Bank generating approximately 20% returns. Commerzbank follows Wednesday, though CEO Bettina Orlopp has dismissed a potential UniCredit merger as "not sensible" given valuation concerns.

Healthcare: AstraZeneca and Philips release results Tuesday. Philips aims to extend gains from new AI tool launches, while AstraZeneca focuses on China market access for weight-loss drugs, though Novo Nordisk's recent sharp decline raises concerns for the sector.

Consumer: L'Oreal reports Thursday after last quarter's disappointing performance despite U.S. and China market recovery. The French beauty giant raised €3 billion for M&A and recently doubled its stake in Swiss dermatology firm Galderma, with deal closure expected this quarter.

Other Notable Releases: Barclays and Ferrari (Tuesday), TotalEnergies and Heineken (Wednesday), Mercedes and Siemens (Thursday), and Natwest (Friday).

Market Implications:

The divergence between European and U.S. markets suggests investors are rotating away from expensive tech stocks into more diversified European equities, potentially signaling a broader shift in global investment strategies during elevated volatility.