European Stocks Hit a Monthly Low Amid Earnings Doldrum

European shares plummeted to a monthly low due to disappointing earnings, with the STOXX 600 dropping 0.7%. Luxury and tech stocks saw significant losses, led by a Capgemini revenue cut. Meanwhile, Europe's economic data revealed unexpected growth in some areas, as investors eye an imminent UK budget release.

In a turbulent trading session, European stock markets experienced a sharp decline on Wednesday as lackluster earnings weighed heavily on the mood of investors. The pan-European STOXX 600 index fell 0.7% to its lowest point since September 23, as luxury and technology stocks suffered the most.

Adding to the market's gloom, the major players like LVMH and L'Oreal reported nearly 2% losses, with Kering diving 3.1%. Capgemini's drastic 7.5% drop after revising down its 2024 revenue target further hit the tech sector, pushing it down 1.6% overall.

Amid these setbacks, positive data emerged from the European economy. Germany's economy exceeded expectations by growing 0.2%, while France saw a 0.4% rise in its third-quarter GDP. Investors also anticipate crucial UK budget announcements and comments from the European Central Bank's Isabel Schnabel later today.

(With inputs from agencies.)