European equities traded unevenly on Thursday, with London’s benchmark index lagging behind its continental peers as losses in major banking names dragged on sentiment.
The session offered few economic catalysts, but fresh trade data out of Germany added to the cautious tone. Figures from Destatis showed German exports unexpectedly fell by 0.5% in August compared to July, defying expectations for a 0.3% increase. This followed a 0.2% decline the previous month.
Imports also contracted more sharply, down 1.3% versus a 0.7% drop in July and worse than the anticipated 0.5% decline. Year over year, exports fell 3.9% after rising 1.4% previously, while imports grew just 1.0% compared with July’s 4.4% surge.
Market reaction was split across the region. The FTSE 100 slipped 0.2%, weighed down by banking losses, while the CAC 40 and DAX climbed 0.5% each.
Among individual movers, Südzucker AG (USOTC:SUEZF) advanced even after reporting an 82% plunge in quarterly operating profit, as investors appeared to focus on longer-term resilience despite weakness in sugar prices.
Renewables operator Drax Group (LSE:DRX) gained ground after unveiling plans for a £450 million extension of its share buyback program aimed at reducing capital.
Residential landlord Grainger plc (LSE:GRI) also rallied following a trading update that highlighted robust rental growth ahead of its full-year 2025 earnings release set for November 20.
In France, IT consultancy Alten (EU:ATE) rose after revealing plans to split the chairman and CEO roles as part of a broader governance reform.
Not all companies fared well. Gerresheimer AG (TG:GXI) slumped sharply after the packaging and medical device maker cut its 2025 outlook for the third time this year.
Banking names were a key source of weakness in the U.K. market. HSBC Holdings (LSE:HSBA) dropped after proposing to take its struggling Hong Kong unit, Hang Seng Bank Limited, private. Lloyds Banking Group (LSE:LLOY) also fell after warning it may need to set aside more provisions tied to car finance mis-selling.
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