Deutsche Bank, Siemens Energy and Argenx will join the Euro Stoxx 50. What will happen to the shares?

Germany's largest bank Deutsche Bank, Europe's leading power turbine manufacturer Siemens Energy and biotechnology corporation Argenx will be included in the Euro Stoxx 50 index of eurozone blue chips. Inclusion in large indices usually increases demand and reduces uncertainty, contributing to the growth of quotations. Nokia, Stellantis and Pernod Ricard will leave the index following the annual review.

Shares of Deutsche Bank, Siemens Energy and Belgium-listed biotech company Argenx will be included in the Euro Stoxx 50 from September 22, its compiler ISS Stoxx said. These companies will replace in the European index of blue chips supplier of equipment for 5G-networks Nokia, car company Stellantis and manufacturer of premium alcohol Pernod Ricard - all three affected by duties imposed by U.S. President Donald Trump, notes Bloomberg.

Inclusion of securities in large stock exchange indices often leads to growth of their value due to demand from index funds. They are obliged to buy shares of new participants to bring their portfolios in line with the updated benchmark structure. Additionally, quotations are supported by an expanding investor base, increased liquidity and stronger analyst coverage, which reduces the uncertainty premium.

Deutsche Bank was removed from the Euro Stoxx 50 in 2018 - just a few months after current head Christian Sewing took over. The comeback was made possible by the banking sector's rally in Europe in 2025, with shares in Germany's largest bank more than doubling in value over the past 12 months.

Shares of Siemens Energy, another German company in the index, have more than tripled in value since last September and have become one of Europe's top 2024 earners amid a surge in global electricity demand. The company recently said it expects to reach the top end of its forecast for the year thanks to orders for gas turbines and power grid equipment.

Argenx, which specializes in the treatment of cancer and autoimmune diseases, has risen in value by 30% over the past year due to strong financials and positive clinical data. Analysts remain highly interested in Argenx and almost unanimously recommend buying its shares, predicting significant growth in their value, Bloomberg notes.

Nokia's shares have fallen 7% over the past year. The Finnish company is facing the consequences of Trump's tariffs and a weak dollar, which forced it to cut its profit forecast in July. Stellantis has lost almost half of its capitalization in 12 months - the tariff turmoil has only exacerbated the problems of the carmaker, which is trying to improve sales in the US and Europe. The market value of Pernod Ricard fell by almost a quarter over the year - the owner of elite brands of vodka and cognac also became a victim of the global trade war along with other European luxury producers, the agency recalls.

According to FactSet, stock analysts on average consider it profitable to buy shares of Nokia and Pernod Ricard at current prices (consensus rating Overweight). Most economists treat Stellantis securities neutrally, recommending not to buy, but also not to sell them (rating Hold).

JPMorgan Chase has a cautious view on European blue chips. At the end of August, the largest US investment bank reiterated its stance that the Euro Stoxx 50 will continue to struggle. "Eurozone equities have not seen gains since Ma, and we continue to believe the index will remain sideways for some time," Investing.com quoted the bank's research note as saying. At the same time, it predicted the Stoxx Europe 600 broad market index for the region would rise - by another 2% by the end of 2025, noting that "the time to buy [European equities] is approaching."

Although investor interest in European assets is growing, JPMorgan notes a shift in investor focus away from traditionally strong economies: "We are receiving more and more inquiries from investors about how to invest in Europe, avoiding its central economies - France and Germany; today, many see these two countries as weak links". The bank still sees the UK as the best choice in Europe. In addition, JPMorgan sees attractiveness in peripheral markets on the continent, particularly Spain, where GDP growth forecasts look better than in Germany and France.

This article was AI-translated and verified by a human editor