Europe's STOXX 600 posts biggest drop in three weeks as banks tumble and oil climbs
EWG•The STOXX 600 fell more than 1% to 637.74, its steepest decline in three weeks, as bank shares slumped and higher oil prices and French bond yields weighed on sentiment.
1. Banks lead decline
The pan-European index fell more than 1% on Thursday. The euro zone banking index dropped 4.2%, its weakest day since March; Spain's Bankinter fell 7.6% after results showed higher deposit costs pressured margins, while Barclays slipped 2.3% after reporting a smaller-than-expected third-quarter profit.
2. Mixed sector performance
Higher oil prices, rising French bond yields and economic uncertainty weighed on risk appetite. Luxury shares weakened after Hermes reported slightly softer-than-expected quarterly revenue, while Nestle rose 1.1% after better-than-expected third-quarter organic sales growth. Healthcare stocks gained 2.1%, led by UCB, which rose 21.6% after raising its 2026 revenue growth forecast.
