By Avinash P and Niket Nishant
Oct 15 (Reuters) - European shares hit their highest in more than two weeks on Thursday, helped by solid earnings and a surge in healthcare stocks which have emerged as a refuge for global investors when the AI trade fades.
Shares of Ericsson rose 6.8% and were the top gainer on the benchmark after the Swedish telecom gear maker reported better-than-expected third-quarter results.
Investors have pinned their hopes on a robust earnings season to pull the STOXX 600 out of
the narrow range it has been confined to over the past month.
On Thursday, the pan-European STOXX 600 index rose 0.38% to 640.16 points after hitting its highest since September 30 earlier in the session.
The healthcare index rose 2.4% and was among the top gainers on the benchmark. Technology shares lost 1.5% and led declines, dragged down by German chip systems manufacturer Aixtron's 13% drop.
Chip stocks Infineon and Soitec fell 5.2% and 7.7%, respectively, while chip equipment maker ASML dropped 4.2%.
Tech stocks across the globe were rattled after hot US inflation data on Wednesday stoked fears of further Federal Reserve rate hikes, hitting companies that rely on debt to fund AI infrastructure build-outs.
"The CPI pressure is still with us and that is triggering some more fear on long-duration stocks, for techs, and also on their financing," Michele Morganti, senior equity strategist at Generali Investments, said.
Mondi tumbled 7.9% after the paper and packaging firm said it raised prices for several paper grades in the third quarter to offset energy and raw material costs.
Antofagasta slid 4.1% after the miner reported copper production of 436,900 tons year to date, down 8.3% from the same period in 2025.
The drop, along with weaker copper prices, pulled the mining sector down 0.8%.
Separately, data showed that consumer prices in France rose 3.4% year-on-year in September on an EU-harmonised basis, in line with a preliminary reading from late September.
Traders see an 87% chance that the European Central Bank will deliver a quarter-point rate hike in December, according to LSEG data, after it raised rates twice earlier this year to tackle inflation driven by higher energy prices.
"The inflation rates in Europe are reflective of energy problems and industrial bottlenecks. When you have these kinds of problems, you actually need more capital in the system to try to address some of them," said James Rasteh, co-founder and chief investment officer at Coast Capital Management.
The World Economic Forum could appoint Christine Lagarde as its next chair as soon as next month, four people close to the organisation told Reuters, meaning she would step down early as ECB chief and trigger a wider reshuffle at the top of the central bank.
(Reporting by Avinash P and Niket Nishant in Bengaluru; Editing by Janane Venkatraman, Tasim Zahid and Andrew Heavens)
