Europe stocks drop on concerns over global growth
The DAX index in Germany traded largely unchanged, while the CAC 40 in France slid 0.1% and the FTSE 100 in the U.K. dropped 0.2%
European stocks dropped slightly lower Monday, starting the new week on a dour note amid concerns over global growth as well as caution ahead of earnings from AI company Nvidia.
At 08:02 GMT, the DAX index in Germany traded largely unchanged, while the CAC 40 in France slid 0.1% and the FTSE 100 in the U.K. dropped 0.2%.
This pessimistic mood comes after a troubled week for European markets last week, with regional bourses closing sharply lower on Friday as concerns about an artificial intelligence bubble and the global economy shook investor confidence.
Recent numbers showed the U.K. economy declined in September, while the eurozone grew just 0.2% in the third quarter, compared with the previous three months.
In the corporate sector, the main event this week is likely the release of Nvidia’s earnings after the close on Wednesday, which are shaping as a test for the artificial-intelligence bull run.
Analysts on average expect the company to post a 53.8% year-over-year rise in fiscal third-quarter earnings per share, according to LSEG, and they have been getting more optimistic about future revenue – leaving the company with a lot to beat, especially given the artificial intelligence company’s massive $5 trillion valuation.
Caution over Nvidia was furthered by filings over the weekend showing that billionaire investor Peter Thiel offloaded his nearly $100 million stake in Nvidia.
Concerns over stretched tech valuations had triggered losses in the tech sector through late-October and early-November.
In Europe, it was a relatively quiet day as far as quarterly earnings are concerned.
Netherlands-based technology group Prosus expects earnings per share for the first half of fiscal 2026 to rise as much as 37%, driven by higher profitability across its businesses and gains related to Tencent.
Additionally, French cosmetics giant L’Oreal said it has taken a minority stake in mass-market Chinese skincare brand Lan, marking its second investment in recent months in China, where brands have grown rapidly.