Stocks in Euro Area Hit 12-week Low

European stocks opened Q4 on a weaker footing, with both the STOXX 50 and STOXX 600 falling nearly 1%, pressured by rising global bond yields and elevated crude oil prices, while extending losses from September. Most sectors traded in negative territory, with banks leading the losses and technology shares the notable exception. Pandora fell more than 4%, underperforming the STOXX 600, after its CEO said US demand was set to stabilize at a low level. Credit Agricole (-2.7%), BNP Paribas (-2.6%), Societe Generale (-2.7%) traded in the red and HSBC (-2.6%), Novartis (-1.7%), Shell (-1.2%), LVMH (-1.6%) and Nestlé (-1.2%) were also lower. Meanwhile, the technology sector gained, tracking global peers higher after Micron Technology issued an upbeat outlook. ASML Holding (+0.8%) and Infineon (+1.7%) were among the gainers.

EU50 decreased to 6194.00 Index Points, the lowest since July 2026. Over the past 4 weeks, Euro Area Stock Market Index (EU50) lost 2.53%, and in the last 12 months, it increased 9.84%.

European equity markets were set for a lower open on Thursday as elevated bond yields continued to weigh on stocks, even as softer-than-expected US PCE inflation data reduced expectations for a Federal Reserve rate hike this month. Oil prices also eased amid signs of improving energy flows from the Middle East, despite continued deadlock in US-Iran negotiations. Meanwhile, Micron Technology issued an upbeat revenue forecast for the current quarter, signaling sustained demand for AI memory chips. In Europe, investors will assess manufacturing activity data for the Eurozone, Germany, France, Italy and Spain, along with regional and Italian unemployment figures. No major earnings reports are scheduled for Thursday. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were both down around 0.3%.