European stock markets exhibited a subdued performance. Publicis Group and technology stocks dragged on the benchmark index, offsetting the lift provided by optimistic corporate earnings reports. The Stoxx Europe 600 index closed virtually unchanged, having earlier climbed as much as 0.9% to a record high. The media sector was the worst performer, with Publicis Group shares plunging 9.2% as analysts viewed the advertising company's 2026 growth guidance as conservative. Technology stocks also underperformed the broader market, with shares of professional analysis service providers RELX Plc and Wolters Kluwer NV falling more than 10% amid investor concerns about the disruptive potential of artificial intelligence. Fund managers are questioning "how much exposure they want to have to an industry that is under a cloud of disruption," said Tom Ackermans, a portfolio manager at Fidelity International, adding that "the current market volatility could create some highly attractive buying opportunities for companies that can adapt and leverage the advantages of AI." Novo Nordisk shares will be in focus on Wednesday after the pharmaceutical company indicated its annual sales would decline, citing increasing competition for its blockbuster products Ozempic and Wegovy, alongside pressure from US government efforts to lower drug prices.
The European benchmark stock index has just concluded a seven-month winning streak, its longest run of monthly gains since 2021. The region remains attractive to investors seeking opportunities away from expensive market segments, with lower-valued value stocks being the primary drivers. "The rally is fragile because it is driven by relief rather than confidence," stated Aneeka Gupta, Director of Macroeconomic Research at WisdomTree, adding that "after a strong run, Europe has become very crowded in the typically safer cyclical/value stock areas." Amundi SA advanced 1.7% after the Europe's largest asset manager reported fourth-quarter pre-tax profit that exceeded market expectations and announced a €500 million share buyback program. Trading platform Plus500 Ltd. saw its shares jump 7% following its announcement of an entry into the US retail prediction market. Zalando SE shares plummeted 12% after Morgan Stanley warned of the company's ongoing risks from social media e-commerce.
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