European stock markets moved lower on Thursday, led by a sharp decline in French equities as disappointing corporate results and falling energy prices outweighed optimism surrounding Nvidia’s strong outlook.
France’s CAC 40 fell 1.3%, reaching its lowest level since July 24 and heading for its weakest daily performance in more than a month.
The broader STOXX 600 slipped 0.3%, putting the pan-European benchmark on course for its biggest one-day decline in two weeks.
CAC 40 Leads European Market Decline
French equities were among the weakest performers across Europe as investors reacted to disappointing company earnings.
Germany’s DAX gained around 0.2%, while the UK’s FTSE 100 declined 0.4%.
London stocks were pressured by weaker oil prices and ex-dividend trading in several major companies.
The sharpest losses, however, came from France, where heavy selling hit both consumer and industrial stocks.
Pernod Ricard Slides After Weak Sales
French spirits producer Pernod Ricard fell 7.4% following disappointing full-year results.
Net sales dropped to approximately €9.40 billion, compared with €10.96 billion the previous year.
That represented a reported decline of 14.2%, while organic sales fell 3.9%.
Weak demand in the United States and China remained a major concern for the company. Travel disruptions linked to conflict in the Middle East also weighed on performance.
The results intensified selling across French consumer stocks and contributed to the CAC 40’s decline.
Porr Shares Drop on Revenue Miss
Austrian construction company Porr also came under heavy pressure, falling around 8.5%.
The company reported second-quarter revenue that missed analyst forecasts by roughly 3.5%.
The disappointing result added to weaker sentiment across European industrial stocks and encouraged investors to reduce risk exposure.
Nvidia Earnings Lift European Chip Stocks
Losses across European markets were partly offset by strong gains in semiconductor-related companies.
Optimism followed better-than-expected results and guidance from Nvidia, one of the most closely watched companies in the global artificial intelligence sector.
Nvidia reported quarterly revenue that more than doubled from a year earlier, supported by strong demand for AI hardware.
The company also projected fiscal 2028 revenue growth of around 70%, well above Wall Street expectations of approximately 44%.
Nvidia shares rose as much as 6% in U.S. premarket trading following the announcement.
ASML and European Semiconductor Stocks Gain
Nvidia’s strong outlook helped lift several major European semiconductor companies.
ASML Holding gained around 2.5%, while STMicroelectronics, Infineon Technologies and BE Semiconductor Industries advanced between approximately 2% and 4%.
Investors interpreted Nvidia’s guidance as another positive signal for long-term spending on artificial intelligence infrastructure.
Continued investment in AI data centers and computing equipment could support demand for European semiconductor suppliers and chipmaking equipment companies.
German Consumer Sentiment Improves
Economic data from Germany provided another modest positive signal for European markets.
The German consumer sentiment index from the Nuremberg Institute for Market Decisions and GfK unexpectedly improved to -26.6 points heading into September.
The previous reading was revised to -29.4.
Higher income expectations and a slightly stronger economic outlook contributed to the improvement.
However, consumers remained cautious about discretionary spending, suggesting that confidence across Europe’s largest economy is still fragile.
Oil Prices Fall for Fourth Consecutive Session
Energy stocks also weighed on European markets as Brent crude declined around 0.5% to $87.40 per barrel.
Oil was heading for its fourth consecutive daily decline.
Prices remained under pressure following reports of renewed diplomatic activity involving Iran and the United States.
Qatar’s prime minister reportedly traveled to Tehran as part of efforts to support negotiations over commercial shipping through the Strait of Hormuz.
Any progress toward restoring safer shipping conditions could reduce concerns over global oil supply disruptions, putting further downward pressure on crude prices.
European Markets Balance AI Optimism Against Economic Risks
Thursday’s session highlighted a sharp contrast across European equities.
Strong Nvidia results boosted semiconductor stocks, but those gains were not enough to offset heavy losses in French shares and weakness across the energy sector.
For now, investors are balancing optimism over continued AI investment against concerns surrounding corporate earnings, economic growth and falling commodity prices.
