European equity markets slipped on Thursday, following Wall Street’s losses, as investors awaited crucial U.S. economic data that could influence the Federal Reserve’s monetary policy outlook.
At 07:10 GMT, Germany’s DAX dropped 0.6%, France’s CAC 40 fell 0.7%, while the U.K.’s FTSE 100 rose slightly by 0.5%.
Eyes on U.S. Jobless Claims
Wall Street closed lower for a second straight day on Wednesday, with technology stocks leading declines amid concerns over stretched valuations and uncertainty surrounding the Fed’s next moves. The losses followed remarks by Federal Reserve Chair Jerome Powell, who highlighted growing economic risks and interest rate uncertainty.
Investors will closely watch weekly U.S. jobless claims data later in the session, amid concerns about a potential softening in the labor market and rising layoffs. A final reading of second-quarter U.S. GDP is also due Thursday, followed by Friday’s personal consumption expenditures (PCE) price index, the Fed’s preferred inflation gauge. These figures are expected to clarify whether further rate cuts are likely this year after the first reduction earlier this month.
European Economic Sentiment
In Europe, market participants are monitoring consumer confidence data from France and Germany, along with the Swiss National Bank’s latest policy update. The SNB is widely expected to maintain its policy rate at 0%, as it attempts to navigate the Swiss economy through the effects of a 39% U.S. tariff on goods exported over the summer.
Corporate Highlights
Hennes & Mauritz (TG:HMSB) posted a stronger-than-expected rise in third-quarter operating profit but warned that U.S. tariffs could weigh more heavily on Q4 gross margins. German shoe manufacturer Birkenstock (NYSE:BIRK) revised its fiscal 2025 revenue guidance upward to at least €2.09 billion and pre-announced Q4 sales of at least €520 million, up 14% on a reported basis and 18% in constant currency.
European auto data from ACEA showed that Stellantis (BIT:STLAM) returned to sales growth in Europe for the first time in over a year, supported by plug-in hybrid and battery-electric vehicles. Chinese EV maker BYD (USOTC:BYDDY) sold three times as many cars in the EU last month compared to August 2024, surpassing U.S. rival Tesla (NASDAQ:TSLA) for the second consecutive month.
Oil Retreats
Oil prices pulled back from recent highs amid supply-demand uncertainties. At 03:10 ET, Brent futures fell 0.3% to $69.14 per barrel, and U.S. West Texas Intermediate crude futures slipped 0.3% to $64.80 per barrel. Both benchmarks had gained 2.5% on Wednesday to their highest levels since August 1, driven by a surprise decline in U.S. crude inventories and concerns that Ukraine’s attacks on Russian energy infrastructure could disrupt supply.
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