FRANKFURT: European stocks slipped on Monday, pressured by automakers despite gains in tech and mining, while Madrid’s benchmark closed at its lowest in over a week.
The pan-European STOXX 600 fell as much as 0.4 percent before closing 0.1 percent lower, weighed down by defensive stocks such as Unilever and Nestle.
Spanish banks dragged Madrid’s benchmark 1.2 percent down to its lowest since September 10.
Porsche sank over 8 percent, its worst performance in nearly three years, after the carmaker warned of delays in electric vehicle rollouts and trimmed its 2025 outlook. It helped to send the autos index to an over one-month low.
“The re-basing of (Porsche’s) guidance may be the last but leaves the turnaround a drawn-out affair with product cycle and brand challenges,” Jefferies analysts said in a note. Shares of Porsche-parent Volkswagen, which also cut its 2025 profit outlook, fell 7.1 percent.
Euro zone banks dipped 0.9 percent, with Spain’s Sabadell down 3.9 percent after bigger rival BBVA said it raised its bid for the bank by 10 percent to 3.39 euros per share. BBVA also fell 2.6 percent.
Heavyweight Roche limited losses on the STOXX 600. The drugmaker rose 2.3 percent after signalling its ambition to join Eli Lilly and Novo Nordisk at the top of the booming weight-loss market.
Technology stocks also helped to stem losses, climbing 0.8 percent. Chipmakers ASML and ASMI advanced 2.1 percent and 1.7 percent, respectively.
European miners added 1.4 percent, with UK-listed precious metal miner Fresnillo among the top gainers with a 4.6 percent rise as gold prices surged to an all-time high.
Other top miners including Glencore and Rio Tinto were up 2 percent and 2.1 percent, respectively.
Investors weighed comments from at least five Federal Reserve officials, many of whom questioned the need for more US interest rate cuts with inflation still above target and the labor market holding firm. Investors looked ahead to Fed Chair Jerome Powell’s speech on Tuesday, following last week’s 25-basis-point cut.
Meanwhile, European traders await fresh flash PMI data for September on Tuesday.
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