European equity markets traded lower on Thursday as investors continued to monitor the conflict in the Middle East, while renewed concerns over rising artificial intelligence spending weighed heavily on technology shares.
Markets were also digesting the European Central Bank’s decision to leave interest rates unchanged after raising borrowing costs by 25 basis points at its June policy meeting.
Major European indices move lower
France’s CAC 40 fell 1.3%, Germany’s DAX declined 0.8%, and the UK’s FTSE 100 slipped 0.4% as risk appetite weakened across the region.
Technology stocks led the declines after Alphabet and Tesla outlined plans for substantially higher capital expenditure, prompting investors to question whether future returns will justify the increased spending.
STMicroelectronics (BIT:STMMI) dropped 12.4%, while Infineon Technologies (TG:IFX) fell 3.5%.
Mixed corporate earnings across Europe
French banking group BNP Paribas (EU:BNP) declined 1.4% despite reporting second-quarter profit and revenue ahead of market expectations.
Automotive supplier Valeo (EU:FR) gained 3.4% after posting stronger-than-expected first-half sales.
Energy producer TotalEnergies (EU:TTE) advanced 2.7% following solid second-quarter results, while software company Dassault Systèmes (EU:DSY) rose 2.7% after reaffirming its full-year guidance alongside its quarterly earnings.
Deutsche Boerse (TG:DB1) slipped 1.3%, despite reporting a 12% increase in second-quarter net profit.
Industrials and energy outperform
Daimler Truck Holding (TG:DTG) climbed more than 4% after raising its full-year revenue and profit forecasts.
Spanish energy company Repsol (TG:REP) added 3.2% after increasing its second share buyback programme for 2026 to €500 million, supported by a sharp improvement in adjusted second-quarter earnings.
Consumer and healthcare stocks diverge
Nestlé (TG:NESR) fell 6.5% after reporting a significant decline in first-half net profit.
Pharmaceutical group Roche (TG:RHO) gained 2.1% after reaffirming its full-year outlook.
UniCredit (BIT:UCG) lost more than 3% after the Italian bank’s chief executive said the lender intends to seek control of Commerzbank during the fourth quarter.
Telecoms and travel stocks in focus
Nokia (NYSE:NOK) rose 3.2% after delivering stronger-than-expected comparable operating profit for the quarter.
Centrica (LSE:CAN) fell 4.2% after announcing plans to cut 1,300 jobs following an 18% decline in first-half profit.
BT (LSE:BT.A) slipped around 1% after reporting a slight fall in first-quarter earnings.
EasyJet (LSE:EZJ) jumped 5.5% as investors welcomed signs of resilient summer travel demand despite a 70% decline in third-quarter profit.
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