European shares slipped on Thursday, extending a volatile week as investors digested escalating political tensions in France and fresh U.K. economic data.
At 07:15 GMT, Germany’s DAX fell 0.4%, France’s CAC 40 dipped 0.1%, and the U.K.’s FTSE 100 eased 0.1%. The moves followed a week marked by sharp swings, with European indexes hitting a two-week low on Tuesday before bouncing back on Wednesday.
French Political Uncertainty in Focus
Confidence in French markets improved midweek after Prime Minister Sébastien Lecornu announced plans to suspend a landmark pension reform until after the 2027 election. This decision aimed to ease one of the country’s most severe political crises in decades and bolster the government’s chances of surviving no-confidence votes scheduled for Thursday.
The CAC 40 rallied 2% on Wednesday — its best performance since early May — helped by strong gains from luxury giant LVMH (EU:MC).
U.K. Economy Returns to Growth
The latest economic data showed that the U.K. economy grew 0.1% month-on-month in August, according to official figures published Thursday. The International Monetary Fund (IMF) expects Britain to post the second-fastest growth rate among the G7 economies in 2025, behind the U.S.
However, the 1.3% annual growth pace remains modest, with Chancellor Rachel Reeves expected to introduce substantial tax increases in next month’s budget.
Corporate Highlights
- Nordea Bank (BIT:1NDA) reported Q3 net profit of €1.23 billion, supported by strong pre-provision income and lower-than-expected impairments.
- Pernod Ricard (EU:RI) posted a 7.6% decline in first-quarter organic sales, citing weakness in the U.S. and Chinese markets.
- Travis Perkins (LSE:TPK) recorded a return to growth in Q3 as its Merchanting strategy gained traction.
- Fastned (EU:FAST) reported record charging revenue, supported by a 32% surge in energy sales across 1.7 million charging sessions.
Oil Prices Rise on India Supply Developments
Crude oil prices climbed as expectations of tighter supply grew. Brent futures rose 0.9% to $66.34 per barrel, while U.S. West Texas Intermediate futures gained 0.8% to $58.77.
The rally followed remarks from U.S. President Donald Trump, who said he received assurances from Indian Prime Minister Narendra Modi that India would “soon” scale back purchases of Russian oil. A shift by one of the world’s largest oil importers is expected to tighten global supply in the coming months.
Both benchmarks had touched their lowest levels since early May in the prior session, weighed down by U.S.-China trade tensions and warnings from the International Energy Agency (IEA) about a potential surplus in 2026.
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