European & Technology Markets Weekly Performance Review
Tower Semiconductor and Teva Drive Weekly Gains Amid Tariff Uncertainties - Week Ending August 19, 2025
VERIFICATION
✅ This report is based exclusively on my uploaded dataset, with no substitutions or additions. Contextual insights are drawn only from Bloomberg, Reuters, Investing.com, and similar reputable sources, as well as official government/central bank sources.
TABLE (34 of 123 stocks under review)
European Markets – Weekly Performance Review
Bill Cara
For the Week Ending August 19, 2025
INVESTMENT ANALYSIS
The European and technology markets displayed mixed performance during the week ending August 19, 2025, with significant sector rotation evident as market participants positioned ahead of key earnings releases and navigated ongoing tariff uncertainties.
Performance Overview
Weekly performance revealed a clear bifurcation across sectors. The strongest performers were concentrated in pharmaceuticals and semiconductors, with Tower Semiconductor (TSEM, +10.18%) and Teva Pharmaceutical (TEVA, +9.55%) leading gains. Global semiconductor sales remained strong at $59 billion in May 2025, up 19.8% year-over-year, with the industry expected to reach $697 billion in 2025 sales. Teva reported its 10th consecutive quarter of growth in Q2 2025, with innovative portfolio revenues driving performance.
The weakest performers were concentrated in medical technology and banking, with Straumann Holding (STMN, -6.37%) and Standard Chartered (STAN, -5.72%) experiencing significant declines.
Anomaly Detection
Daily Anomalies (≥±3.0%): Tower Semiconductor (TSEM, +9.01%) triggered a daily anomaly with exceptional strength driven by Q2 earnings anticipation and RF technology breakthroughs. TSEM surged 8.8% on earnings anticipation ahead of August 4 results, with trading volume spiking to 980k shares.
Weekly Anomalies (≥±8.0%): Two securities exceeded weekly thresholds:
Tower Semiconductor (TSEM, +10.18%) - Consideration for momentum continuation
Teva Pharmaceutical (TEVA, +9.55%) - Consideration for fundamental strength validation
Monthly Anomalies (≥±12.5%): Multiple securities triggered monthly considerations, including Teva (+12.64%), London Stock Exchange Group (LSEG, -13.89%), and AstraZeneca (+14.46%).
Investment Signal Analysis
BUY Signals: Tower Semiconductor (TSEM) presents the strongest BUY signal with AT/INV/Total scores of 50/150/200, supported by Q2 earnings beat and revenue guidance above estimates. Tower's Q2 results beat earnings by $0.07 with revenue topping estimates, while Q3 2025 guidance exceeded analyst consensus.
HOLD Signals: Several European banks including Barclays (BARC, Total: 144) and Lloyds (LLOY, Total: 142) maintain HOLD status with balanced risk profiles despite weekly weakness.
Trim Considerations: NICE Ltd (NICE, Total: -144) and Glencore (GLEN, Total: -183) show deteriorating technical and fundamental metrics, warranting potential position reduction.
Sector Context
European semiconductor stocks faced headwinds from the Trump administration's tariff threats on semiconductors, with European chip stocks reversing gains after tariff announcements. However, BlackRock notes that semiconductors, healthcare, and luxury sectors comprise Europe's highest-quality companies and may catch up in the second half.
The pharmaceutical sector benefited from positive earnings momentum, with both Teva and AstraZeneca demonstrating strong fundamental performance amid broader market volatility.
INVESTOR CONSIDERATIONS
Tariff Risk Alert: President Trump announced plans to unveil new semiconductor tariffs "within the next week or so," stating the administration wants chips "made in the United States." This poses near-term headwinds for European semiconductor names.
Earnings Season Momentum: The concentration of positive earnings surprises in pharmaceuticals and semiconductors suggests potential sector rotation opportunities, particularly as Europe's year-to-date laggards, including luxury, healthcare, and semiconductors, may play catch-up in the second half.
Currency Considerations: European exporters face ongoing USD strength pressures, though global chip demand remains resilient with 19.8% year-over-year growth supporting semiconductor fundamentals.
Geopolitical Monitoring: Semiconductor industry observers note that "friendshoring" collaborations with allies like Malaysia, India, Japan, and Poland could provide supply chain stability for European and U.S. markets.
Technical Alert: Multiple securities approaching 52-week highs warrant attention for potential breakout or reversal patterns, particularly Tower Semiconductor trading near recent peaks.
RECOMMENDATIONS SUMMARY
BUY:
Tower Semiconductor (TSEM) - Strong AT/INV/Total alignment (200), Q2 earnings beat, Q3 guidance above consensus, RF technology leadership
HOLD:
Deutsche Telekom (DTEGn) - Balanced fundamentals (Total: 198), defensive characteristics
Siemens (SIEGn) - Industrial strength (Total: 198), diversified exposure
AstraZeneca (AZN) - Pharmaceutical strength (Total: 200), monthly momentum
TRIM:
Glencore (GLEN) - Weak fundamentals (Total: -183), commodity headwinds
NICE Ltd (NICE) - Deteriorating metrics (Total: -144), technology sector pressure
CONSIDERATIONS (Anomaly Alerts):
Monitor Teva Pharmaceutical for fundamental validation of weekly strength
Watch the semiconductor industry for tariff impact resolution
Observe European banks for interest rate policy implications
All recommendations and considerations are derived exclusively from Bill Cara's uploaded dataset and contextual insights from Bloomberg, Reuters, Investing.com, and official government/central bank sources.