European equity markets traded lower on Thursday as investors assessed rising geopolitical risks in the Middle East alongside a fresh wave of corporate earnings announcements.
Losses were partly cushioned after new economic data showed the U.K. economy returned to growth in May, supported by stronger activity in the services sector.
UK economy returns to growth
Figures released by the Office for National Statistics showed that U.K. gross domestic product expanded by 0.1% in May, reversing the 0.1% decline recorded in April, which had marked the first monthly contraction since October 2025.
On an annual basis, the economy grew 1.3% in May.
Despite the encouraging data, the FTSE 100 fell 0.4%, while Germany’s DAX and France’s CAC 40 both declined 1.1%.
Sterling also weakened against the U.S. dollar after reports suggested Home Secretary Shabana Mahmood is the leading candidate to become the UK’s next Chancellor.
Corporate news drives stock moves
Delivery Hero (TG:DHER) declined after Uber Technologies (NYSE:UBER) formally launched a public takeover offer valuing the German food delivery company at €41.50 per share.
TotalEnergies (LSE:TTE) also came under pressure after the French energy group said the conflict in the Middle East had reduced its second-quarter production by approximately 210,000 barrels of oil equivalent per day.
Experian (LSE:EXPN) traded lower after reaffirming its full-year outlook without upgrading guidance.
Ocado (LSE:OCDO) also lost ground after announcing additional delays to two automated fulfilment centres currently under development.
Mining group BHP (LSE:BHP) weakened after reporting a 5% decline in fourth-quarter copper production.
ABB (TG:ABB) also moved lower after announcing its $5.5 billion acquisition of British automation specialist Rotork, while Rotork shares surged on the agreed takeover.
Publicis and BASF outperform
Among the stronger performers, Publicis Groupe (EU:PUB) advanced after posting robust second-quarter results and raising its full-year guidance.
German chemicals producer BASF (TG:BAS) also gained after increasing its outlook for full-year EBITDA before special items.
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