Tech rotation puts European stocks back on track

When America sneezes, Europe doesn’t seem to catch the same cold it used to.

Despite the disruption from technology stocks, the Stoxx 600 posted its seventh straight weekly gain in eight and remains near record highs.

The situation on the other side of the Atlantic is very different. In a recent report, Deutsche Bank began drawing comparisons to the dot-com bubble of 2000 and said the recent sell-off in artificial intelligence and software-related stocks showed no signs of abating. This week’s losses have pushed the S&P 500 down nearly 30% from its October 2025 peak.

Meanwhile, European stocks overall are looking more resilient.

Euro Stoxx 600 Index and Nasdaq Index

The surge in volatility comes at a sensitive time for the corporate world, with earnings season in full swing. Last week’s announcements of big tech products did little to soothe domestic nerves in the United States, while some well-known European companies are preparing to release earnings this week.

Traders work on Nasdaq on February 4, 2026 in New York.

Adam Jeffrey | CNBC

Banking M&A

CNBC’s Carolin Roth will speak with UniCredit CEO Andrea Orcel in Milan on Monday to detail the bank’s results. The bank remains a major M&A player in Europe, with its minority stakes in Commerzbank and Alfa Bank of Greece delivering a return on investment of around 20%, the bank said.

In Frankfurt, we will hear on Wednesday from rival Commerzbank CEO Bettina Orlopp, who told Squawk Box at the World Economic Forum in Davos in January that a deal with UniCredit was “unwise” given the German bank’s high valuation.

Commerzbank CEO: Bank mergers and acquisitions only make sense if they create value

Financial stocks across Europe endured a roller-coaster week that ended with losses.

shock treatment

Next week will also bring a new set of data from some of the biggest players in European healthcare, namely pharmaceutical giants AstraZeneca and Philips. The Dutch medical technology company hopes to continue its positive performance momentum by launching new artificial intelligence tools, while AstraZeneca looks to China to enter the weight loss drug market. However, Danish pharma rival Novo Nordisk will set off some alarm bells after its sales forecast disappointed investors and the company’s shares fell sharply. Executives from Philips and AstraZeneca will join Squawk Box Europe on Tuesday.

For more on why AstraZeneca poured billions into China before its shares floated in New York, read this.

Because it’s worth it?

CNBC’s Charlotte Reed will speak with Nicolas Hieronimus, CEO of French beauty giant L’Oreal, in Paris on Thursday. Last quarter, a recovery in its two largest markets, the United States and China, failed to support the stock, which fell as sales fell slightly. L’Oréal may also start acquisitions after raising 3 billion euros in M&A financing late last year. The company recently doubled its stake in Swiss dermatology group Galderma, a deal expected to close this quarter.