Published Sat, Oct 24, 2026 · 07:51 AM
EUROPEAN stocks suffered their steepest weekly loss since early September, as tensions in France and higher oil prices dampened the optimism sparked by some strong corporate earnings.
The pan-European Stoxx 600 index fell 0.31 per cent to close at 635.77 points on Friday (Oct 24). For the week, the benchmark is down about 1.4 per cent.
The declines cap a week packed with earnings from heavyweights such as SAP, Barclays and Kering, which offered fresh insights into economic conditions and consumer sentiment.
Overall earnings estimates have improved for European companies, but higher crude prices and the unrest in France have left investors jittery.
“What’s happening in France will at least persist as a market factor through the election cycle. The protests might dissipate, but it doesn’t change the financial reality that France is facing,” said Josh Stevens, chief investment officer at CresAlta Investment Management.
The turmoil has provided an explosive backdrop for the presidential election in the country, scheduled for April next year.
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Businesses and museums planned to close during the weekend despite curbs on demonstrations as French President Emmanuel Macron seeks to restore order a week after nationwide protests turned violent.
Investors will scrutinise Moody’s decision on France’s credit rating, due later in the day.
Luxury weakness sours sentiment
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On Friday, Kering dropped 16.6 per cent after third-quarter sales at its flagship Gucci brand fell. The stock was the biggest laggard on the Stoxx 600, and the luxury index, the worst-performing European sector so far this year, fell 3.6 per cent.
“The European luxury sector continues to suffer from the Middle East war and China’s weakened appetite,” said Ipek Ozkardeskaya, senior analyst at Swissquote.
L’Oreal climbed 5.6 per cent after the French cosmetics group beat third-quarter sales forecasts.
Defence stocks dropped 3.8 per cent for their worst day since Jun 1, dragged by a 10 per cent decline in French jet engine maker Safran following its results.
The European Central Bank is scheduled to meet next week, with investors pricing in more than a 91 per cent probability that it holds interest rates steady.
The ECB has hiked interest rates twice this year to arrest price pressures stemming from elevated oil prices.
Among other stocks, Holcim gained 5 per cent after the Swiss cement maker raised its full-year earnings forecast, while French food caterer Sodexo rose over 6 per cent after stronger-than-expected full-year revenue.
Volvo Cars slumped over 24 per cent to a record low after reporting a bigger-than-expected third-quarter operating loss and unveiling plans to cut a further 2,500 jobs.
Results from oil majors BP and Shell are due next week. REUTERS