Investors weigh mixed corporate results across the region while the Bank of England and Norway hold rates steady.
LONDON (November 6, Market Insider) — European stocks slipped on Thursday as investors digested a fresh wave of earnings reports and cautious guidance from major corporations. The Stoxx 600 fell 0.3% by mid-afternoon in London, with most sectors trading in the red despite a few standout performances in pharmaceuticals and logistics.
AstraZeneca Gains as Diageo Drags
AstraZeneca (AZN.L) shares climbed 3.2% after the Anglo-Swedish drugmaker posted better-than-expected third-quarter earnings and revenue up 10% year-on-year, while maintaining its full-year outlook.
CEO Pascal Soriot told CNBC that the company chose to stay conservative amid headwinds in China and Latin America, noting:
“We decided to be cautious and potentially overdeliver if everything goes well.”
Soriot also addressed ongoing discussions with the Trump administration on rebalancing global R&D costs, emphasizing that AstraZeneca continues to expand its U.S. manufacturing and R&D footprint.
In contrast, Diageo (DGE.L) — the world’s largest spirits maker — plunged 6% after cutting its full-year guidance, blaming slower sales in the U.S. and China. The company reiterated that it still expects a $200 million hit from U.S. tariffs, compounding concerns about waning consumer demand for premium beverages.
German Stocks Deliver a Mixed Picture
In Germany, Rheinmetall (RHM.DE) reported Q3 sales of €2.78 billion, just shy of estimates, but operating profit surged 20% to €360 million. Its weapons division achieved record sales of €2 billion in the first nine months, fueled by NATO and Ukrainian orders, sending shares up 1.2%.
DHL (DPW.DE) also impressed markets, with its quarterly earnings beating expectations. CEO Tobias Meyer told CNBC that while U.S. volumes fell sharply, the company’s global operations remained resilient. Shares jumped 8.7% in Frankfurt trading.
Meanwhile, Commerzbank (CBK.DE) slipped 2.4% after reporting a surprise 7.9% drop in quarterly profit to €591 million, citing tax effects and restructuring costs. However, the lender raised its full-year net interest income forecast to €8.2 billion from €8 billion.
Central Banks Stand Pat
The Bank of England (BoE) and Norges Bank both kept interest rates unchanged — at 5.25% and 4%, respectively — in line with expectations. U.K. 10-year gilt yields eased about 3 basis points to 4.44%, while the British pound edged up 0.18% to $1.3073 as investors looked ahead to the U.K.’s Autumn Budget.
Wall Street and Asia in Focus
Overnight, Asia-Pacific markets rose, tracking Wall Street gains after AMD’s earnings beat lifted AI-related stocks. However, U.S. equities opened slightly lower on Thursday as traders weighed whether the recent AI sell-off has run its course.
Investors also monitored the U.S. Supreme Court’s hearing on President Donald Trump’s tariffs, which could determine whether the administration exceeded its authority under the International Emergency Economic Powers Act (IEEPA). A ruling against the White House could roll back key tariffs, potentially providing a tailwind for global equities.
Bottom Line
European markets closed lower as earnings volatility and cautious corporate outlooks overshadowed central bank steadiness. While AstraZeneca and DHL provided bright spots, Diageo’s warning served as a reminder that global consumer demand remains uneven heading into the year’s final stretch.
Stoxx 600: -0.3% | AstraZeneca: +3.2% | Rheinmetall: +1.2% | DHL: +8.7% | Commerzbank: -2.4% | Diageo: -6%
