The pan-European STOXX 600 index edged 0.6% higher to 644.67, rising for the second straight week. Germany's DAX rose as SAP gained 10% after the software group reported second-quarter current cloud backlog growth ahead of analyst expectations.
The broader technology index added 1.7%, reclaiming some lost ground after quarterly updates from STMicroelectronics and BE Semiconductor failed to impress investors on Thursday.
Investors have been trying to balance AI-driven growth against stretched valuations and returns from hefty investments in the technology, leading to swings in share prices in the sector of late.
"The two big problems for the big tech companies are that capex is no longer being funded out of free cash flow alone and that cheaper open-source AI is seriously threatening business models," said Deutsche Bank analysts led by Jim Reid.
The STOXX 600 technology sector is up nearly 17% so far this year, just behind energy stocks that have surged about 32%. On Friday, oil and gas stocks failed to capitalise on Brent crude prices that remained over $100 a barrel, as a 6.4% drop in Neste weighed on sentiment after the Finnish biofuel maker and oil refiner reported second-quarter core profit slightly below expectations.
European Central Bank may need to raise interest rates again as inflation risks ran high, three policymakers said on Friday, after the bank left rates steady on Thursday but kept a September hike on the table.
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
(What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .)
Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today.
Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price