European stocks rebound as SAP earnings and PMI data ease oil-price fears

European equities rallied on Friday, July 24, 2026, as a strong earnings update from SAP ↗ 1.08% and better-than-expected business activity data helped investors look past a fresh surge in oil prices driven by Middle East tensions.

SAP Lifts Tech Sector

The pan-European STOXX 600 rose 0.8% to 644.5 points, according to Trading Economics, recovering from its steepest one-day loss in two weeks during the previous session. Germany's DAX led gains as SAP climbed 6.2% after reporting second-quarter results that showed current cloud backlog growth of 27% year-over-year to €22.9 billion, ahead of analyst expectations. Cloud revenue reached €6.3 billion, up 24% at constant currencies, while the company raised its full-year adjusted operating profit guidance to reflect recent acquisitions of data platform Dremio and AI developer Prior Labs. The broader European technology index added 1.4%, clawing back losses from a difficult session Thursday when disappointing updates from STMicroelectronics ↘ 6.18% and BE Semiconductor had weighed on the sector.investing+3

PMI Data Signals Return to Growth

Sentiment received an additional lift from Eurozone flash PMI data for July. The Composite Output Index rose to 51.9 from 50.0 in June, well above market expectations of 50.3, according to S&P Global and Trading Economics. Manufacturing PMI climbed to 52.0 from 51.4, also beating forecasts of 51.5. The readings marked a return to expansion in overall business activity after the composite index had dipped to a 31-month low of 47.5 in May amid disruptions caused by the Middle East conflict.tradingeconomics+2

Oil Surge Casts Shadow

The gains came against a backdrop of surging energy prices. Brent crude hovered around $100 a barrel on Friday after jumping more than 5% in the prior session, bringing its monthly advance to nearly 38%. President Trump's escalating rhetoric toward Iran and Yemen's Houthi rebels has fueled fears of further supply disruptions through the Strait of Hormuz, a chokepoint for global oil trade. The oil spike has complicated the outlook for central banks, reviving inflation concerns just as softer U.S. consumer and producer price data had given policymakers room to pause.finance.yahoo+2