European stock markets ended the week broadly unchanged as investors took reassurance from U.S. inflation data and increasingly bet that the Federal Reserve will be less inclined to raise interest rates at its September 15-16 meeting.
Oil prices rose 4.1% but remained below $90 a barrel, while gold stayed firm, with the price of an ounce gaining 0.3% as expectations for stable U.S. interest rates supported demand for the precious metal.
The Stoxx Europe 50 ended the week virtually unchanged. Amsterdam gained 0.9%, while Paris, Zurich and Frankfurt declined 0.7%, 0.5% and 0.1%, respectively. Brussels was the weakest performer, with the BEL 20 falling 1.7%.
U.S. markets performed slightly better. The S&P 500 advanced 0.5%, while the Nasdaq gained 0.4%, supported by stronger risk appetite and hopes for greater stability in interest rates.
Asian markets also posted solid gains, led by Japan, where stocks climbed 4.7%, and South Korea, which rose 9.6%.
Technology Stocks Lead the Gains
The technology sector gained 1.3% during the week, with semiconductor stocks advancing 1.8%.
Among the notable performers, ASML jumped 7.2%, while Check Point Software gained 5%. The highly volatile SpaceX rose 6.1%.
Cisco, however, fell 6.6% despite reporting profit expectations that were better than anticipated. Orders from hyperscalers, the major companies operating large-scale data center infrastructure, came in below expectations.
Defense Stocks Return to Positive Territory
The defense sector also moved higher, gaining 1.9% during the week and bringing its one-year advance to 14.5%.
The sector continues to benefit from strong order books and government investment plans aimed at expanding defense capabilities.
French defense company Thales gained 2.9%.
Energy Stocks Benefit From Higher Oil Prices
The energy sector rose 2.6%, closely tracking the recovery in crude oil prices.
The OPEC lowered its forecast for global oil demand in 2026, while Chevron stood out with a 6% gain. The U.S. oil giant continues to benefit from strong quarterly results.
Inside the BEL 20
With the European vacation season limiting corporate news flow, Belgium's benchmark BEL 20 had a difficult week. By midday Friday, the index was down 1.7% for the week.
Several brokers and analysts nevertheless published research on companies following the release of their latest quarterly and half-year results.
Aperam Gains 3.3%
Aperam rebounded strongly, gaining 3.3%, after JPMorgan upgraded the stainless-steel producer to "Overweight" and set a €57 price target, nearly 20% above its current share price.
The bank expects a significant acceleration in earnings beginning in the fourth quarter and highlighted the company's continued shift toward higher-margin activities.
The stock also remains viewed positively from an investment perspective.
Lotus Bakeries Hits a Record High
Lotus Bakeries gained 2.2% after reporting very strong half-year results on August 7.
Several analysts subsequently raised their price targets, helping the stock reach a new all-time high. Goldman Sachs increased its target from €11,300 to €13,900, while Bank of America raised its target from €12,100 to €13,300.
Despite the strong momentum, the stock appears significantly overvalued. Any setback or disappointing results could therefore trigger a substantial decline.
Syensqo Benefits From Higher Price Targets
Syensqo rose 2.1% after Deutsche Bank increased its price target from €74 to €93.
The company released relatively reassuring quarterly results in late July after disappointing annual results in February.
JPMorgan also significantly increased its target, from €67.50 to €100, which is around 22% above the current share price. The bank also raised its earnings estimates for 2026 and 2027.
KBC Target Raised
KBC gained 1.3% after RBC Capital Markets raised its price target from €124 to €134 while maintaining a "Hold" rating.
Azelis Gets a Slight Target Increase
For Azelis, which gained 0.6%, Deutsche Bank modestly increased its price target from €14.20 to €14.70.
The analyst sharply raised its 2026 earnings forecast following a relatively encouraging second-quarter report but maintained a "Hold" recommendation.
The outlook remains more cautious, with a "Sell" view maintained on the stock.
Umicore Falls Despite Positive Analyst View
Deutsche Bank also reviewed Umicore's better-than-expected half-year results.
The bank raised its 2026 forecasts, reiterated its "Buy" recommendation and increased its price target from €25.50 to €27.50.
Despite the positive analyst assessment, Umicore shares fell 3.4% during the week.
GBL Declines 4%
GBL dropped 4%.
Kepler Cheuvreux slightly reduced its price target from €92 to €91 following the holding company's half-year results. The broker nevertheless remains fundamentally positive on GBL and maintained its "Buy" recommendation.
UCB Slips Despite Positive Competitive News
The lack of convincing new research data from competitor MoonLake concerning sonelokimab, its experimental treatment for psoriatic arthritis, is potentially positive news for UCB.
Psoriatic arthritis is an important potential indication for UCB's flagship drug Bimzelx.
UCB shares, however, failed to benefit from the development and declined 1.9% over the week.
Outside the BEL 20
Sipef Surges 14.9%
Sipef was one of the week's strongest performers, jumping 14.9% after reporting excellent half-year results.
The plantation holding company raised its earnings guidance for the year and now expects 2026 profit to exceed its record 2025 result.
CMB.TECH Gains 4.3%
CMB.TECH gained 4.3% as the shipping company continued actively managing its fleet.
The company is preparing to sell another tanker at a substantial $56.9 million capital gain, equivalent to approximately €0.17 per share. The gain is expected to be recognized in the fourth quarter.
This will be the company's 13th tanker sale this year, out of the 27 vessels it owned at the beginning of the year.
CMB.TECH is taking advantage of strong secondhand vessel prices and is now selling relatively young ships as well.
Proceeds from the sales will be used to support further growth, reduce debt and fund dividends. At the same time, the company continues to make its fleet more environmentally friendly.
Lakefront Biotherapeutics Cuts Operating Loss
Lakefront Biotherapeutics, formerly known as Galapagos, gained 3.6% after nearly halving its operating loss during the first half of the year.
The company ended its cell-therapy activities earlier this year and is now attempting to establish a new direction around gamgertamig, an early-stage drug candidate being evaluated in clinical trials for several potential applications, including certain rare blood disorders.
However, the candidate remains at an early stage of development. Before it could potentially reach the market, it would need to complete several years of clinical testing, with no guarantee of success.
The investment therefore continues to carry a very high level of risk.
Nextensa Improves Its Financial Position
Nextensa gained 1.5% despite reporting a 15% decline in first-half profit.
The decline was primarily caused by lower rental income following several significant property disposals from its portfolio.
Its real estate development projects, however, generated higher revenue and made further operational progress.
The company's financial position also improved during the period. Debt, leverage and the average cost of financing all declined.
Overall, European markets closed the week with limited movement as investors focused heavily on inflation and the outlook for Federal Reserve interest rates. The performance across technology, defense and energy stocks showed that investors continue to favor sectors supported by strong earnings expectations, government spending and resilient demand.
