Europe's STOXX 600 slips as mixed earnings and rising oil sour mood
SPY•The STOXX 600 fell 0.95% to 638.38 points as investors weighed mixed earnings, rising oil prices and higher French bond yields. Hermes dropped 7.3%, while Nestle gained 1.2% and UCB rose 12.2%.
1. Market falls on risk concerns
Europe's STOXX 600 fell 0.95% to 638.38 points on Thursday, erasing the previous session's gains as investors weighed mixed corporate earnings, higher oil prices and rising French bond yields. Oil climbed more than 2% after Houthi attacks in Saudi Arabia stoked concerns about escalation and supply disruption. The spread between France's 10-year bond yield and German Bunds reached a fresh 15-year high amid political uncertainty and protests in France.
2. Earnings move shares
Hermes fell 7.3% after reporting slightly weaker-than-expected quarterly revenue, while Nestle rose 1.2% after better-than-expected third-quarter organic sales growth. UCB gained 12.2% after raising its 2026 guidance on strong demand for Bimzelx and Cimzia. Barclays traded flat after reporting a third-quarter profit miss and saying it would cut around 5,000 jobs, or 5% of its workforce, this year.
3. Technology stocks weaken
The banking index fell 2.7% and the technology index dropped 2.1%. Infineon, STMicroelectronics and ASML declined between 2.8% and 3.6%; BE Semiconductor Industries fell 3.1% and SAP slipped 1% after quarterly earnings. Meta's earnings did not ease investor concerns about the sustainability and profitability of heavy AI spending.
