European Stocks Fall From Record as Novartis, BNP Earnings Weigh
European stocks retreated from record-high levels as underwhelming results from Swiss drugmaker Novartis AG and French lender BNP Paribas SA weighed on sentiment.
The Stoxx Europe 600 Index was 0.2% lower at the close, with healthcare shares leading declines. Telecoms outperformed, boosted by a 21% rally in Nokia Oyj shares after Nvidia Corp. announced plans to make an $1 billion equity investment in the Finnish firm in an AI networking push. Utilities also gained, lifted by Spanish energy firm Iberdrola SA after it raised its full-year earnings guidance.
Novartis shares’ 4.2% fall had the biggest impact on pan-European indexes, after it reported weaker-than-expected earnings for the third quarter. BNP Paribas lost 3.5% after its trading unit suffered a hit from souring debt in the third quarter. Amundi SA retreated 6.4% as UniCredit SpA is planning to pull almost all client money from the French asset manager by mid-2027.
Europe’s benchmark gauge closed at a record high on Monday as the US and China neared a trade deal, while broadly positive earnings supported stocks further.
Global shares face a reality check this week with key companies including Microsoft Corp., Alphabet Inc. and Apple Inc. reporting results, and rate decisions are due from the Federal Reserve and European Central Bank.
“Markets appear buoyed by optimism, but that also raises the stakes: any misstep or disappointment could trigger a sharp pullback, while news that simply meets expectations should allow the rally to grind higher,” said Florian Ielpo, head of macro research at Lombard Odier AM.
Source : Bloomberg.com
