European stocks slipped slightly on Monday, opening the week on a weaker note as investors reacted to mounting concerns over global economic growth and exercised caution ahead of Nvidia’s highly anticipated earnings.
By 03:02 ET (08:02 GMT), Germany’s DAX was largely unchanged, while France’s CAC 40 edged down 0.1%. The U.K.’s FTSE 100 fell 0.2%.
Global Growth Concerns Pressure Markets
European sentiment remained fragile after a difficult week in which major regional indexes dropped sharply. Worries about a potential artificial intelligence bubble and broader global slowdown continued to weigh on investors.
Fresh evidence of weakening global activity came over the weekend with data showing Japan’s economy contracted at its fastest pace since Q2 2024. GDP fell 1.8% on an annualized basis and 0.4% quarter-on-quarter, driven by weaker consumer spending and reduced exports, which were hit by higher U.S. tariffs.
China also reported weak data late last week, adding to global growth worries. In the United States, the recent government shutdown is expected to drag on fourth-quarter economic performance.
Across Europe, the latest figures painted a mixed picture: the U.K. economy contracted in September, while eurozone GDP expanded just 0.2% in the third quarter compared with the previous period.
Nvidia Earnings Take Center Stage
The standout corporate event this week is Nvidia’s (NASDAQ: NVDA) quarterly earnings, due Wednesday after U.S. markets close. The results are widely seen as a crucial test of the ongoing AI-fueled market rally.
Analysts expect Nvidia to deliver a 53.8% year-over-year increase in fiscal Q3 earnings per share, according to LSEG. Forecasts for future revenue have also risen, setting a high bar for the chipmaker—now valued at over $5 trillion.
Caution increased after filings released over the weekend revealed that billionaire investor Peter Thiel sold his nearly $100 million Nvidia stake. Concerns over stretched tech valuations have already triggered losses across the sector through late October and early November.
In Europe, earnings activity is relatively subdued. Prosus (AS: PRX) expects first-half fiscal 2026 earnings per share to grow up to 37%, helped by stronger profitability and gains linked to Tencent. L’Oréal (EPA: OREP) announced it has taken a minority stake in Chinese skincare brand Lan—its second recent investment in China’s fast-growing beauty market.
Oil Retreats as Supply Concerns Ease
Oil prices slipped after Russia’s Novorossiysk port resumed crude loadings, easing fears of prolonged supply disruptions. Brent crude fell 0.7% to $63.97 per barrel, while WTI dropped 0.7% to $59.51.
Both benchmarks had surged more than 2% on Friday after Ukraine launched a major attack on Novorossiysk and a nearby Caspian Pipeline Consortium facility, temporarily halting exports equal to about 2% of global supply. By Sunday, tanker-tracking data showed loading activity had resumed.
