European stock markets advanced on Friday amidst volatile trading, with a rebound in pharmaceutical company Novo Nordisk A/S helping to counterbalance weakness in the automotive sector.

The Stoxx Europe 600 index closed up 0.9%. Novo Nordisk A/S rose 5.3%, recovering after a week in which its market value had shrunk by nearly a quarter due to market concerns about potential generic versions of its weight-loss drug Wegovy. Swedish bank Svenska Handelsbanken upgraded the stock from "sell" to "buy."

Construction, energy, and banking stocks were among the leading gainers. Automotive stocks were notable decliners, with Stellantis NV plunging 25% after announcing provisions of approximately 220 billion euros ($259 billion) related to a comprehensive restructuring plan. The company is preparing for a major overhaul amid high costs and sluggish electric vehicle sales.

French group Vinci led the strong performance in the construction sector, surging 9.9% on the back of robust 2025 guidance.

The European benchmark index outperformed U.S. markets, which were weighed down by a sell-off in technology stocks. According to a Bank of America report citing EPFR Global data, European equity funds attracted inflows of $4.2 billion in the week ending Wednesday, the largest inflow since April of last year.

Laurent Lamagnere, Deputy CEO of Alphavalue in Paris, commented, "Europe has significantly less exposure to technology than the U.S., so its current outperformance is justified. However, in the long term, the AI winners are in China and the U.S., not in Europe, so the long-term positioning for European equities is less favorable."