Nvidia Earnings Spark European Rally: Tech Optimism Reverses 5-Day Selloff

European stocks bounced back Thursday, halting a brutal five-day losing streak as investors regained appetite for tech plays following Nvidia’s blockbuster Q3 results and bullish forward guidance.

The Bounce: The Stoxx 600 climbed 0.4%, with major indices posting solid gains:

• Germany’s DAX: +0.5%
• France’s CAC 40: +0.34%
• UK’s FTSE 100: +0.21%
• Switzerland’s SMI: +0.1%

Most of continental Europe joined the party—Belgium, Denmark, Spain, Sweden all closed higher—though Russia, Czech Republic and Ireland lagged.

Stock Moves That Mattered: Games Workshop stole the show, rocketing 13.5% on upgraded earnings guidance. For the half-year to November 30, the tabletop gaming giant expects pre-tax income of GBP 135M (vs. GBP 126.8M last year) and core revenue of GBP 310M (vs. GBP 269.4M)—a solid beat.

Halma surged over 9% after crushing first-half earnings and raising full-year outlook. Health and safety plays are quietly having a moment.

Big names scoring 1-2% gains: BAE Systems, Rolls-Royce, Tesco, Informa, and IAG. Meanwhile, WPP dropped 4.5%, and JD Sports Fashion tumbled nearly 4% after slashing earnings guidance.

Economic Backdrop: Germany’s producer prices fell 1.8% year-on-year in October—the eighth straight monthly decline, signaling persistent deflationary pressure in manufacturing. Eurozone construction output declined 0.5% in September, marking the second consecutive monthly contraction.

The UK’s CBI order book survey showed marginal improvement but remains deeply pessimistic, with the balance at -37 vs. -38 prior month—still well below expectations.

The Read: Tech-led recoveries are fragile. Nvidia’s beat might’ve lit a fire today, but weak construction data and ongoing producer price deflation suggest the European economy is still navigating rough waters. Watch whether this bounce holds or if macro headwinds reassert themselves next week.