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SummaryCompaniesVestas tops STOXX after Q3 profit beat, share buybackEuropean corporate outlook improvesNovo Nordisk trims outlook; shares fall Nov 5 (Reuters) - European shares recovered towards the close to end higher on Wednesday, after falling earlier in the session when a selloff in technology stocks weighed on markets, while investors assessed corporate earnings. The pan-European STOXX 600 index (.STOXX), opens new tab ended up 0.2% at 571.9. It had declined as much as 0.7% earlier in the session. Other major regional indexes also traded higher. Technology stocks (.SX8P), opens new tab, the top sectoral losers earlier in the day, pared declines to edge down 0.1%. Advertisement · Scroll to continueReport Ad Stock indexes in the U.S. also inched higher after technology stocks, that have been at the centre of equity overvaluation worries globally this week, steadied and data showed private payrolls rebounded in October. "European markets are piggy-backing on the US today, with an upbeat mood following the positive US job numbers," said Michael Field, chief equity strategist at Morningstar. "Risks of an AI bubble may yet come to bite us, but not this week - investors are in a buoyant mood," he added. The healthcare stock index (.SXDP), opens new tab declined 1%. Novo Nordisk (NOVOb.CO), opens new tab shares fell 4.5% after it trimmed its full-year forecasts. Advertisement · Scroll to continue Ambu (AMBUb.CO), opens new tab, down 15.8%, slumped to the bottom of the STOXX 600, after the Danish endoscopy solutions maker below consensus. Siemens Healthineers (SHLG.DE), opens new tab slumped 8.6% after it reported fourth-quarter sales below analysts' consensus and issued an earnings outlook that disappointed investors. Meanwhile, the auto and parts sector (.SXAP), opens new tab, which has logged big losses so far this year, gained 2.3%. BMW (BMWG.DE), opens new tab rose 6.8% after its core profit margin rose in the third quarter. Mercedes-Benz (MBGn.DE), opens new tab, Renault (RENA.PA), opens new tab, and Volkswagen (VOWG.DE), opens new tab gained between 2.3% and 3.5%. Energy stocks (.SXEP), opens new tab advanced 0.9%. Vestas (VWS.CO), opens new tab rose 14.7% to top the benchmark index after reporting third-quarter operating profit above expectations and saying it would launch a share buyback programme. Valuation fears resurfaced this week on Wall Street and in Asia that have had record-breaking runs this year, driven primarily by enthusiasm for artificial intelligence. Ad Break Coming Up NEXT StayNext OffEnglish 180p288p360p480p540p576p720pHD1080pHDAuto (180p) About ConnatixV2139381526 About ConnatixV2139381526 Continue watchingafter the adVisit Advertiser websiteGO TO PAGE Comments by major U.S. banks on Tuesday further fuelled these worries at a time when the Federal Reserve has also voiced a hawkish hold on interest rate cuts and the U.S. federal government remains in shutdown. Earnings season in Europe is halfway done and data compiled by LSEG showed that the outlook for European corporate health has substantially improved so far. However, they underperform their U.S. peers. Nexi (NEXII.MI), opens new tab slid 7.9% after the Italian payments group's third-quarter core profit narrowly missed a company-provided consensus. On the data front, the euro zone economy expanded at its fastest rate since May 2023 in October. Reporting by Johann M Cherian and Sukriti Gupta in Bengaluru; Editing by Eileen Soreng and Emelia Sithole-Matarise Purchase Licensing Rights
