European stock markets edged lower on Monday, kicking off the week on a cautious note as investors grappled with renewed global growth concerns and awaited earnings from AI leader Nvidia.
At 08:02 GMT, Germany’s DAX hovered near the flatline, while France’s CAC 40 slipped 0.1% and London’s FTSE 100 declined 0.2%.
Global growth jitters
The downbeat tone follows a rough week for European equities, which closed sharply lower on Friday amid mounting fears of a potential AI-driven market bubble and broader weakness in the world economy.
Fresh signs of slowing momentum emerged over the weekend after data showed Japan’s economy contracted at the fastest pace since Q2 2024.
Japan’s GDP dropped 1.8% year-on-year for the July–September period, with a quarterly fall of 0.4% as private consumption weakened and exports were hit by elevated U.S. tariffs.
Late-week figures had already revealed persistent softness in China—the world’s second-largest economy—while the prolonged U.S. federal shutdown is expected to weigh on fourth-quarter activity in the United States.
In Europe, recent releases showed the U.K. economy shrinking in September, while the eurozone expanded only 0.2% in the third quarter compared to the previous three months.
Nvidia earnings in focus
In corporate news, the headline event this week will be Nvidia’s (NASDAQ:NVDA) quarterly earnings, due after Wednesday’s market close. The results are viewed as a critical test of the AI rally.
Analysts expect fiscal third-quarter earnings per share to jump 53.8% year over year, according to LSEG, with optimism around future sales also rising—setting a high bar for a company already valued at roughly $5 trillion.
More caution entered the market after filings showed billionaire investor Peter Thiel sold his nearly $100 million Nvidia stake.
Concerns over stretched tech valuations triggered selling pressure across the sector in late October and early November.
Elsewhere in Europe, Monday’s corporate schedule is relatively light.
Dutch tech group Prosus (EU:PRX) said it expects first-half fiscal 2026 earnings per share to climb up to 37%, helped by improved profitability and gains tied to Tencent.
Meanwhile, French beauty giant L’Oréal (EU:OR) disclosed a minority investment in Chinese mass-market skincare brand Lan—its second strategic move in China in recent months as domestic brands grow rapidly.
Oil slips as supply fears ease
Crude prices edged down after Russia’s Novorossiysk port resumed crude shipments, easing immediate worries about supply disruptions.
Brent fell 0.7% to $63.97 a barrel, while U.S. WTI dipped 0.7% to $59.51.
Both benchmarks had jumped more than 2% on Friday after Ukrainian strikes hit Novorossiysk and a nearby CPC terminal, briefly halting exports equal to around 2% of global supply.
By Sunday, tanker-tracking data indicated that shipments had restarted.
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