European stocks underperform global peers amid Trump's victory

Despite a broad rebound in European stock markets on Thursday, major benchmarks remained under pressure following Trump's victory in the US election on a weekly basis.

The pan-European Stoxx 600 index was flat for the week, contrasting with a 4.3% surge in the S&P 500 and a 5.6% rally in the China A50. This underperformance underscored the European economy's fragility in response to external factors. Trump's pledged tariffs have certainly spooked European markets, with Germany's political uncertainties compounding the downside pressure.

The week has been overshadowed by the US election, with European markets largely reacting to political events.

Economic data did provide some encouraging insights into the eurozone's economic trajectory. The final services PMIs and manufacturing PMIs for October were both revised upwards, though business activity in manufacturing remained contracted.

Notably, Germany saw improvements in both sectors and, more encouragingly, its factory orders rose by 4.2% month-on-month in September, the highest increase since December 2023. However, this improvement could be undermined if Trump imposes additional tariffs on European goods.

European stock benchmarks were mixed over the week as of Thursday's close. The Euro Stoxx 600 fell 0.2%, Germany's DAX rose by 0.56%, France's CAC 40 edged up 0.22%, while the British FTSE 100 slipped by 0.45%.

On the earnings front, shares of Novo Nordisk slumped to a 10-month low following disappointing guidance, despite strong sales growth for its weight-loss drug, Wegovy.

Europe's largest company saw its shares fall 5% this week, marking a 43% decline from its all-time high in January. Siemens Healthineers' annual revenue and profit growth outlook for the fiscal year