European stocks slipped on Tuesday as investors took profits following a string of record highs and amid lingering uncertainty over the region’s economic outlook. The pullback also came as markets digested a wave of fresh corporate earnings.
As of 08:05 GMT, Germany’s DAX fell 1.4%, France’s CAC 40 lost 1.4%, and the U.K.’s FTSE 100 traded 0.7% lower.
Investors Lock In Gains
Global equities have rallied to record levels this year, from New York to Tokyo, and European indices have followed suit. The DAX is up more than 20% year-to-date, the FTSE 100 has gained over 18%, while France’s CAC 40, weighed down by political uncertainty, has risen by just under 10%.
However, sentiment remains cautious as growth momentum across the eurozone remains fragile. Many investors are now cashing in on recent gains amid signs of slowing economic activity.
Recent data showed that eurozone manufacturing activity stalled in October, with the final PMI reading at 50.0, precisely on the threshold separating expansion from contraction. The picture varies across member states: Greece (53.5) and Spain (52.1) showed strong improvements, while Germany (49.6) and France (48.8) continued to contract.
Meanwhile, expectations for further monetary easing by the European Central Bank are fading. The ECB held interest rates steady last week for the third consecutive meeting, and markets largely expect no change in December’s policy decision.
BP Leads Earnings Headlines
Earnings season continued in Europe with several major companies reporting on Tuesday. BP (LSE:BP.) posted a third-quarter underlying replacement cost profit of $2.21 billion, beating forecasts, and kept its $750 million share buyback unchanged. The company also reaffirmed its plan for $5 billion in asset disposals this year.
Associated British Foods (LSE:ABF), owner of Primark, Twinings, and Ovaltine, reported lower annual profit and announced a strategic review that could result in separating its retail and food divisions.
In Germany, Hugo Boss (TG:BOSS) said sales and operating profit for the year would come in at the lower end of its guidance, after reporting weaker-than-expected third-quarter results.
Philips (EU:PHIA) raised the upper end of its full-year margin forecast, reporting strong third-quarter earnings driven by rising orders and expanded profitability.
Domino’s Pizza (LSE:DOM) delivered a rise in like-for-like sales in the third quarter, supported by price adjustments, new menu items, and loyalty initiatives that helped sustain demand in a challenging market.
Elsewhere, Norway’s Aker ASA (TG:FKM) posted a solid third quarter, with growth in net asset value and strong investment activity in artificial intelligence and real estate.
Oil Prices Ease on Supply Concerns
Oil prices slipped as traders reacted to the latest OPEC+ meeting, which resulted in a modest production increase for December and a pause in early 2026. Brent crude dropped 1% to $64.27 a barrel, while WTI fell 1% to $60.46. Investors now await U.S. inventory data from the American Petroleum Institute later in the day for further direction.
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