European Shares Buoyed by Insurer Strength, But Adyen’s Forecast Cut Casts Shadow

 

On Thursday, European equities rallied to their strongest levels in two weeks, fueled by upbeat earnings from insurance companies, even as a major fintech concern stumbled sharply on weaker guidance.
The pan-European STOXX 600 edged higher by roughly 0.2%, powered by surges in insurer stocks. Admiral soared nearly 6% on the back of stellar first-half profitability, while Aviva climbed over 4%—reaching heights not seen since 2007—after reporting healthy earnings and boosting its interim dividend. Swiss Re also contributed to the green session, jumping almost 1% thanks to better-than-expected half-year results.
Morningstar’s EMEA strategist noted that financials are “holding their ground even in a lower interest rate climate,” highlighting how strong sector performance helped underpin broader market confidence.

Meanwhile, the mood turned sour for Adyen, the Dutch payments outfit. Shares plunged around 17.5% after the company scaled back its annual revenue forecast, blaming U.S. tariffs and slowing volumes. Despite posting a 20% rise in half-year revenue to €1.09 billion, this fell short of the €1.11 billion analysts anticipated; adjusted EBITDA also missed estimates. The unexpected warning rattled investors, reminding markets how quickly policy shifts can unsettle even strong performers.

Elsewhere in Europe, the market displayed a patchwork of performance—industrial and tech sectors saw modest gains, while defensive stocks lagged. Notably, defense heavyweights like Rolls-Royce, Babcock, and BAE Systems rose 2% to 3%, in response to hopes that the upcoming U.S.–Russia summit may ease geopolitical strains.

On macroeconomic fronts, the UK economy held up better than feared in Q2, providing a rare bright spot amid slowdown concerns. In contrast, June data painted a less upbeat picture for eurozone industrial output, pointing to ongoing growth fragility.

In sum, Thursday’s trading session in Europe blended optimism with caution: boosted by insurer earnings yet tempered by lingering trade and growth uncertainties.