By Sanchayaita Roy and Twesha Dikshit
(Reuters) -European shares were unchanged on Friday, as losses in heavyweight healthcare shares were countered by an advance in oil and gas stocks, closing out a busy week filled with corporate earnings from around the continent.
The pan-European STOXX 600 index held steady at 547 points, clocking marginal weekly losses.
Regional bourses were mixed with Germany’s benchmark DAX dropping 0.3%, while the UK’s blue-chip FTSE 100 gained 0.2%.
With corporate earnings gaining steam, investors are closely examining corporate guidance to see how firms are adjusting to the shifting U.S. tariff policy, ahead of the August 1 trade deadline.
“Earnings misses in Europe are being punished by more than history would suggest, pointing to greater scrutiny after a remarkable rally year-to-date,” said Laura Cooper, head of macro credit and investment strategist at Nuveen.
“How corporates are navigating tariff uncertainty, potentially weaker demand, and supply chain dynamics will be in focus, though a message of past-peak tariff enthusiasm could prop up sentiment and drive greater upside.”
On Friday, Swedish mining equipment maker Epiroc dropped 9.2% after its second quarter results missed market expectations.
Atlas Copco also fell 7.8% after the Swedish industrial group reported second-quarter adjusted operating profit below market expectations and a decline in orders.
There were bright earnings as well, with Saab jumping 16.4% after posting higher-than-expected second-quarter earnings and raising its sales outlook.
Getinge added 6% after the Swedish medical equipment maker reported second-quarter core earnings above market expectations.
Industrials was the best performing STOXX sub-sector this week, while automobiles was the laggard this week.
On Friday, healthcare stocks were the top losers with British drugmaker GSK down 4.6% after a U.S. FDA advisory panel recommended against approving its blood cancer drug Blenrep due to concerns over side effects.
Helping offset some losses, oil and gas shares added 0.6% and food and beverages advanced 0.8%.
Among other moving stocks, Danish wind turbine maker Vestas jumped 15% after J.P. Morgan upgraded its rating to “overweight” from “neutral”.
Iveco climbed 8.3% after a Reuters report that Italy’s Agnelli family is in talks over the possible sale of the truck maker with two mentioning Tata Motors as a potential buyer.
Swedish home appliances maker Electrolux slumped 14.3% after poor second-quarter performance in Europe and India’s Reliance Industries said its retail unit acquired home appliance maker Kelvinator from Electrolux.
(Reporting by Sanchayaita Roy and Twesha Dikshit in Bengaluru; Editing by Vijay Kishore, Leroy Leo and Chris Reese)
