FRANKFURT: European shares fell on Tuesday to their lowest point in more than two weeks, echoing a broader risk-off mood across global markets, as investors gauged a mixed bag of earnings reports. The pan-European STOXX 600 index was down 1.4 percent at 564.26 points, as of 0929 GMT, with all major bourses in the red.
Basic resources led sectoral declines with a 2.5 percent fall, tracking weak copper prices, while stocks that have rallied earlier this year such as Siemens and ABB also fell over 1.7 percent and 2.5 percent each.
European stocks started the month on a tepid note after recording gains for four consecutive months, as investors weighed multiple prevailing risks. An index reflecting investor nervousness spiked 1.88 points to hit its highest since October 17.
The lack of official US data due to an ongoing government shutdown has clouded the outlook for the Federal Reserve’s rate cuts, while traders are increasingly nervous about the multiple deals struck between major players in the artificial intelligence space.
“Europe has been watching the US markets very closely and in fact we’re seeing Europe a little bit more down. German equities are down a little bit more off than sort of the S&P (futures) and well it’s about the same as tech (nervousness),” said David Morrison, senior market analyst at Trade Nation.
Corporate third-quarter earnings were also in full swing with data by LSEG suggesting US company profitability outperforming European peers.
Shares of Edenred slid 10 percent after the French vouchers and benefit cards provider projected its annual core profit growth to slow down in 2026. Geberit gained 2.1 percent after the Swiss plumbing materials maker nudged its full-year sales outlook higher.
In the UK, BP reported a smaller-than-expected drop in third-quarter underlying profit, though its shares were down 0.8 percent as investors were fed with no updates about its closely watched sale process for its Castrol lubricants unit.
On the macro front, investors will be keen on the monetary policy verdict and commentary on the outlook on interest rates by Sweden’s Riksbank later in the day.
Comments
Comments are closed for this article.