European Stocks Tumble as Mixed Earnings Impact Markets

The STOXX 600 Index dropped as Europe's benchmark index recorded its worst monthly performance in a year. Tech stocks faced significant losses. Earnings reports were mixed, with some companies missing profit estimates, while others like Shell reported strong earnings. Inflation data and retail sales also impacted market sentiments.

On Thursday, Europe's benchmark index, STOXX 600, opened lower and appeared set for its worst monthly performance in a year, primarily due to varied earnings results.

The pan-European STOXX 600 decreased by 0.6% by 0812 GMT, hitting its lowest point in almost two months. It fell 2.72% for the month, marking a back-to-back monthly decline and poised to register its steepest fall since October 2023. Previously, the most significant monthly drop was recorded as a 1.5% decline back in April.

Technology stocks experienced a 1.1% drop, heavily impacting the index. Big Tech's increased AI investments, as demonstrated in Meta and Microsoft's results, failed to deliver quick returns, unsettling investors. In individual stock performances, TotalEnergies declined 1.7% due to low adjusted net income, BNP Paribas fell 6.5% after earnings disappointment, while Airbus saw a 2.9% rise post-management announcements.

(With inputs from agencies.)