Europe's STOXX 600 slides on global risk-off mood, mixed earnings (updated)

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04/11/2025 10:10

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BP profit beats expectations, but no news on Castrol sale

Edenred drops after it forecasts earnings slowdown in 2026

Sweden's Riksbank rate decision expected

Volatility index spikes to Oct 17 high

By Johann M Cherian and Sukriti Gupta

Nov 4 (Reuters) - 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 .STOXX ended down 0.3% at 570.58 points, having slipped as much as 1.6% earlier in the day. Most other major regional bourses were also in the red except for the UK's FTSE 100 .FTSE and Italy's benchmark index .FTMIB which each edged up 0.1%.

European stock markets slipped as a recent tech-fuelled rally faded and top Wall Street banks
warned
 that equity markets could be heading for a correction of around 10% to 15%, underscoring growing
concerns
 over sky-high valuations.

 "The concerns raised about the U.S. market are having an impact on broader risk sentiment towards equities," said Richard Flax, chief investment officer at Moneyfarm.

 The EU stock reaction is being driven by the general risk-off sentiment and not necessarily the same fundamental concerns as in the U.S., he added. "In Europe, valuations, at least versus history, are not as elevated and maybe the greater concern is about earnings growth in aggregate."

Basic resources .SXPP led sectoral declines with a 2% fall, tracking weak copper prices. Tech .SX8P stocks lost about 1%.

 Healthcare .SXDP stocks rose 0.8%. Coloplast COLOb.CO rose 4.8% after its fourth-quarter
margin
 beat expectations. Abivax ABVX.PA was up 6%.

A gauge of euro zone volatility .V2TX hit its highest since October 17 earlier in the day.

The lack of fresh official U.S. data due to an ongoing government shutdown has clouded the outlook for the Federal Reserve's interest rate cuts, also dampening sentiment.

 Corporate third-quarter earnings were also in full swing, with LSEG data suggesting U.S. corporate profitability outperforming European peers.

Edenred  slid 8.6% after the French vouchers and benefit cards provider forecast slower earnings growth for 2026.

Geberit  gained 3.9% after it nudged its full-year sales outlook slightly higher.

BP  rose 1.3% after the oil company reported a smaller-than-expected drop in third-quarter underlying profit. However, it provided no update on its Castrol lubricants unit's sale process.

Telefonica  slid 13.1% after the telecoms giant said it would halve its dividend next year.

Associated British Foods  declined 2.9% after the UK company reported a drop in annual profit and said it could separate its Primark fashion business and the food unit.

Investors waited for monetary policy verdict and commentary on the interest rate outlook by Sweden's Riksbank later in the day.

(Reporting by Johann M Cherian and Sukriti Gupta in Bengaluru; Editing by Sherry Jacob-Phillips, Maju Samuel and Richard Chang)

((johann.mcherian@thomsonreuters.com))