European shares advance as Nvidia earnings light up global markets (updated)

RENK AG

20/11/2025 09:56

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JD Sports falls on seeing annual profit at lower end of forecast

Games Workshop hits record high on strong HY forecast

US posts solid September job growth, unemployment up to 4.4%

Updates after markets close

By Anastasiia Kozlova, Johann M Cherian and Tharuniyaa  .

Nov 20 (Reuters) - European shares closed higher on Thursday after AI bellwether Nvidia's results quelled concerns around an AI bubble, but pared earlier gains as uncertainty over the U.S. monetary policy path weighed on investor sentiment.

The pan-European STOXX 600 .STOXX ended up 0.4% at 563.94 points. Other major regional indexes also gained with those in Germany .GDAXI and France .FCHI up 0.5% and 0.3%, respectively.

Chip designer Nvidia's NVDA.O blowout quarterly results and positive outlook came at a crucial time for investors, who have been rattled in recent weeks by fears of an AI bubble.

"What makes us excited about the tech sector and Nvidia is that the demand for AI is still bigger than supply. So that kind of capex span that the market is somewhat worried about is still there," said Marija Veitmane, head of equity research at State Street Global Markets.

"Nvidia results suggest that those earnings are likely to remain strong, very visible, and that's a very strong support for the equity market."

US LABOR MARKET REMAINS SLUGGISH

Meanwhile, data showed U.S.
job growth
 accelerated in September, but the unemployment rate rose to 4.4%, suggesting labor market conditions remained sluggish. Traders continued to bet the Federal Reserve
will skip
 an interest rate cut in December.

The European tech index .SX8P pared earlier gains to edge up 0.1%.

"We are seeing European tech stocks caught up in the overall enthusiasm for the tech trade," said Laura Cooper, head of macro credit at Nuveen.

AI equipment makers that have benefited from the technology boom, such as Siemens Energy ENR1n.DE gained 2.9%.

Europe's defence index .SXPARO was up 1.3%, having slid nearly 3% on Wednesday on signs of a new U.S.-led push to end the Russia-Ukraine war. Rheinmetall RHMG.DE gained 2.6%, while Leonardo LDOF.MI added 2.9%.

Bank stocks .SX7P rose 0.8% and energy .SXEP climbed 1.1%.

European auto stocks .SXAP lost 1.4%. French car parts supplier Valeo VLOF.PA fell 13% after it
provided
 mid-term guidance below expectations. The media .SXMP sector declined 1.9%.

Among other moves, BNP Paribas BNPP.PA gained 4.4% after the French bank raised its CET1 ratio target, a gauge of financial stability, to 13% by 2027.

Games Workshop GAW.L shares hit a record high, up 13.5%, on a strong half-year forecast, while Halma HLMA.L rose 9.2% after raising annual revenue forecast.

JD Sports Fashion JD.L lost 3.9% after it
forecast
 annual profit at the lower end of market expectations.

Data showed euro zone consumer confidence
remained stable
 at -14.2 in November.

 (Reporting by Anastasiia Kozlova, Johann M Cherian, Sukriti Gupta and Tharuniyaa Lakshmi; Editing by Sonia Cheema, editing by Ed Osmond)

 ((Anastasiia.Kozlova@thomsonreuters.com;))