Nokia set to rejoin Euro Stoxx 50, Volkswagen dropped

Index provider STOXX announced the results of its annual review, revealing that Finnish telecom equipment maker Nokia and French utility Engie are set to join the blue-chip Euro STOXX 50 index effective September 21. Simultaneously, German automaker Volkswagen and Dutch information-services provider Wolters Kluwer will be removed from the benchmark index. Nokia's re-entry, occurring just one year after its removal, follows a significant rally where its stock more than doubled year-over-year. The resurgence has been propelled by robust demand for fibre-optic equipment used in AI data centres. In contrast, Volkswagen has seen its shares drop approximately 27% year-to-date as Europe's largest automaker struggles with intensified competition from Chinese electric vehicle manufacturers and internal restructuring headwinds. The annual rebalancing reflects shifting sectoral dynamics across European equities, rewarding AI infrastructure beneficiaries while penalizing legacy automotive manufacturers. Index tracking funds and exchange-traded funds will need to adjust their holdings accordingly ahead of the September 21 implementation date, likely triggering portfolio rebalancing flows across the constituent stocks.