Source: Sharecast
The benchmark Stoxx 600 index closed up 0.1% at 664.01, Germany’s DAX rose 0.4% to 26,771.88 and France’s CAC 40 ended 0.3% higher at 8,361.36.
Nvidia tumbled after founder Huang resigned following an affair with a suspected Chinese spy, wiping billions off the chip giant’s value. The $4.2trn semiconductor manufacturer said Huang had quit as president, chief executive and a member of the board with immediate effect. It also confirmed the appointment of the company's first-ever chair, former Synopsys chief executive Harvey Jones.
Huang, who led the artificial intelligence giant for more than three decades, admitted over the weekend to having an affair. Although neither he nor Nvidia have named the woman, she is widely reported to be Alice Huang, an executive at Singapore-based Megaspeed who the US authorities believe is a Chinese spy.
It was also reported by the New York Times that Huang had had another affair, with a woman who works at Nvidia.
Nvidia shares tumbled nearly 12% in the aftermath of the resignation. However, by the time of the European close, losses were less pronounced, with the stock down 5%.
Dan Coatsworth, head of markets at AJ Bell, said: "Jensen Huang has done so much to talk up both Nvidia’s prospects but also the massive opportunity with AI. While the shares have been knocked for six on the spy scandal and Huang’s subsequent departure from the company, no CEO is irreplaceable, and Nvidia’s day-to-day business will keep ticking along. It’s the long-term vision that could come under question.
"It’s helpful that interim boss and chief financial officer Colette Kress is an internal hire as she already knows the business inside out. But time will tell if investors warm to the approach while Nvidia searches for a permanent replacement. The AI industry is moving at an incredible pace and staying abreast of technology developments and spotting ‘tomorrow’s world’ opportunities is not easy.
"The sharp decline in Nvidia’s share price and market valuation in recent weeks will be felt far and wide. The chip giant has been one of the key drivers of not only the US stock market in recent years, but also the global market. It represented 5.25% of the MSCI World index at the end of October, which is a benchmark for global stocks and shares.
"Global equity funds are a popular backbone for many people’s pensions, particularly those still in work and looking to build up wealth in their retirement pot. Therefore, a drop in Nvidia’s value may have also dragged down global equity funds, particularly tracker funds that follow an index rather than a fund manager selecting which names to own."
In equity markets, Adecco surged as the recruitment company posted above-forecast quarterly numbers and flagged improved demand for permanent placements. The Swiss-French business saw revenues rise 4% to €6bn, up from €5.8bn a year previously, or 3.7% on an organic basis. Operating income rocketed 14% to €180m in the three months to September end, ahead of consensus for €166m.
Burberry racked up strong gains after the luxury fashion brand said it swung to an interim profit of £19m from a loss of £48m in the same period a year earlier.
Germany’s Siemens rallied as it boosted its outlook on the back of booming demand for data centres, electrification and high-speed trains.
Merck rose after the pharmaceuticals firm lifted its 2026 profit forecast for the third time this year.