European Stocks Close Mixed

European stocks closed mixed on Thursday, reflecting similar developments in North America, as plunges in AI infrastructure and heavyweight lenders offset strong performances elsewhere. The Euro STOXX 50 fell 0.4% and the STOXX Europe 600 rose 0.3% to 640. Industrial production in the Eurozone unexpectedly fell at a sharp pace in August, injecting fresh concerns that the bloc's economy may start to feel a bigger impact from higher energy prices, interest rates, and cheap Chinese exports that drove major economies to campaign in Brussels for tariffs and quotas. ASML sank 4.2% and Infineon dropped 5.2%, tracking the global chip sector following slower revenue growth from Anthropic. Meanwhile, Nordea tanked 7.8% after a quarter of lower profits drove the bank to pause its share buyback. On the other hand, L'Oreal, SAP, Rheinmetall, and Wolters Kluwer rose by up to 4.5%.

European stocks fell on Thursday, with the STOXX 50 down 0.7% and the STOXX 600 slipping 0.3%, tracking losses across US and Asian markets amid a global tech sell-off. Chip stocks tumbled on concerns over AI-related valuations, while high US inflation, prospects of high interest rates and elevated oil prices added to investor caution. Markets also kept a close eye on fresh corporate earnings. ASML Holding plunged 6.6%, while Infineon and STMicroelectronics dropped 9.2% and 7.3%, respectively, among the STOXX 600’s worst performers. Basic resources and industrial goods stocks also came under pressure, with Siemens falling 2.7%, Schneider Electric losing 5.1%, ABB declining 4.6%, and Siemens Energy dropping 7.7%. In contrast, telecoms and household goods stocks advanced. Ericsson led the STOXX 600, surging nearly 10% after returning to sales growth in Q3 and reporting better-than-expected earnings. Pernod Ricard added 3.4% after a smaller-than-expected sales decline last quarter.

European equity markets were poised to open lower on Thursday as the global selloff in technology and artificial intelligence stocks deepened, while stronger-than-expected US inflation heightened concerns over further interest rate hikes. Investors shifted toward safe-haven assets, including government bonds, driving yields sharply lower across global markets. In Europe, attention will turn to UK GDP, French inflation and Eurozone industrial production data. On the corporate front, Swedish telecom giant Ericsson reported better-than-expected third-quarter earnings, supported by solid demand for mobile network equipment. French spirits maker Pernod Ricard also posted a smaller-than-expected sales decline last quarter, as growth in India helped offset persistent weakness in the US and China. Meanwhile, Finland’s Nordea Bank fell short of earnings expectations amid narrower lending margins. In premarket trading, Euro Stoxx 50 and Stoxx 600 futures declined 0.9% and 0.5%, respectively.