European stocks fell for a second day as disappointing earnings, including from Kering SA's Gucci, added to concerns over the artificial intelligence trade and elevated oil prices. The Stoxx Europe 600 Index was 0.3% lower by the close, with industrials and luxury stocks among the worst performers.
Volvo Car AB shares sank as much as 32% after the automaker reported a third-quarter loss. Chief executive Håkan Samuelsson said the market for Western-developed cars in China is disappearing fast, prompting Volvo to increase job cuts to some 6% of its workforce. Gucci sales also fell more than expected in the third quarter, as weakness in China set back a years-long turnaround effort, and Kering shares dropped 17.4%.
A slowdown in China was a common thread across several corporate reports. Energy stocks outperformed, gaining with Brent crude as attacks on Saudi Arabia intensified.
Not all companies struggled. L'Oreal SA shares rose 5.6% after sales beat expectations, driven by strong demand for premium skincare and hair products at salons. Holcim AG shares climbed as much as 6.8% after the Swiss cement maker raised its full-year guidance for the second time this year.
European stocks have stagnated in recent weeks and are down about 4% from an August peak. Concerns have mounted over the AI trade, a bond market selloff in France and stubbornly high oil prices. Telecommunication stocks also dropped on competition concerns after Bloomberg reported that SpaceX aims to secure at least 80,000 cell sites across the US and is in talks with at least one major cellular infrastructure company to reach that goal.
Source: Bloomberg Markets · Summarized by HeadlinesBriefing