European Markets Decline with Auto Stocks Leading Losses After Profit Warnings
European stock markets fell on Monday, led by declines in auto stocks as Stellantis and Volkswagen issued profit warnings. Despite this, the STOXX 600 recorded quarterly and monthly gains. Risk sentiment improved with the U.S. Federal Reserve easing policy. German inflation dropped, and the UK's economy grew slower than expected.
European markets closed lower on Monday, with the STOXX 600 down by 1%, primarily driven by declines in the automotive sector following profit warnings from industry majors Stellantis and Volkswagen.
Stellantis slumped nearly 15% after cutting its 2024 profit forecast, while Volkswagen's shares dropped over 4% after revising its annual outlook for the second time in three months.
Despite the day's losses, the pan-European index posted more than a 2% gain for the July-September quarter, and recorded a third consecutive monthly rise, partly buoyed by recent U.S. Federal Reserve policy easing.
(With inputs from agencies.)
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