Upcoming week worldwide: Shift in tech influences European stocks again

Market Updates: Europe’s Resilience Amidst U.S. Declines

It seems that when the U.S. sneezes, Europe isn’t catching a cold like it used to. The Stoxx 600 index is nearing an all-time high, enjoying its seventh positive week out of the last eight, even as tech stocks continue to struggle.

Across the Atlantic, the situation is less optimistic. Deutsche Bank has recently drawn parallels to the dot-com bubble of 2000, noting that the current downturn in AI and software stocks shows no signs of abating. The S&P 500 has decreased about 30% from its high in October 2025.

In contrast, European stocks seem to be gaining strength. This resilience is interesting, considering the broader economic climate.

As volatility spikes, it arrives during earnings season, which adds an extra layer of tension. While the announcements from major U.S. tech firms last week didn’t help ease concerns, some of Europe’s biggest companies are preparing to reveal their results soon.

Focusing on M&A

On Monday, CNBC’s Carolyn Ross will be in Milan to assess UniCredit’s performance and chat with CEO Andrea Orcel. The bank has confirmed its strong position in the M&A market, boasting minority investments in Commerzbank and Greece’s Alfa Bank that have yielded about a 20% return.

Later in the week, Frankfurt will host Bettina Orlop, CEO of Commerzbank. She previously stated at the World Economic Forum in Davos that any potential deal with UniCredit would be “unwise” due to Deutsche Bank’s strong standing.

Financial stocks throughout Europe experienced a tumultuous week, ending up in the red.

Upcoming Insights

Next week will bring fresh figures from major players in the medical field, including pharmaceutical giants AstraZeneca and Philips. Philips is keen to leverage new AI tools to continue its success, while AstraZeneca has its sights set on the Chinese market, eyeing opportunities related to weight-loss drugs. However, after Novo Nordisk saw its shares fall following disappointing sales forecasts, caution is warranted. Executives from both companies are scheduled to appear on Squawk Box Europe on Tuesday.

L’Oréal Prepares for Growth

As L’Oréal prepares to announce its financials, CNBC’s Charlotte Reid will be in Paris on Thursday to speak with CEO Nicolas Hieronymus. Last quarter, the company saw a slight drop in stocks, with recoveries in the U.S. and China not providing enough support. L’Oréal raised €3 billion for M&A efforts late last year, and it’s likely to make some acquisitions soon. Recently, the company increased its stake in Swiss dermatology group Galderma, with the deal expected to finalize this quarter.