European Stocks Slip as Investors Take Profits; BP Earnings Beat Expectations
European markets traded lower on Tuesday, as investors locked in profits following a strong year-to-date rally and digested a series of corporate earnings reports amid ongoing concerns over the eurozone’s economic outlook.
At 08:05 GMT, Germany’s DAX index dropped 1.4%, France’s CAC 40 slipped 1.4%, and the U.K.’s FTSE 100 fell 0.7%, reflecting a broad decline across the region.
Investors Bank Gains After Record-Setting Year
Global equities, from New York to Tokyo, have hit record highs in 2025, and European indices have also benefited from the rally.
The DAX has surged over 20% so far this year, while the FTSE 100 has gained about 18%. However, the CAC 40 in France has underperformed, advancing just under 10%, weighed down by political uncertainty.
Despite the rally, investors remain cautious amid sluggish eurozone growth and mixed economic data. On Monday, data showed that eurozone manufacturing activity stagnated in October, with the final PMI reading at 50.0, marking the line between growth and contraction.
Within the region, Greece and Spain showed the strongest gains, posting PMI readings of 53.5 and 52.1 respectively, while Germany and France remained in contraction at 49.6 and 48.8.
Adding to the caution, the European Central Bank (ECB) is expected to keep rates unchanged through the end of the year. The central bank left its policy rate steady for the third straight meeting last week, signaling a slower path toward monetary easing.
BP Leads Corporate Highlights
Earnings remained in focus across Europe. BP (LON: BP) reported a third-quarter underlying replacement cost profit of $2.21 billion, beating expectations of $2.02 billion. The energy major also maintained its quarterly share buyback at $750 million and said asset disposals are expected to reach $5 billion this year.
Elsewhere, Associated British Foods (LON: ABF) — owner of Primark, Twinings, and Ovaltine — posted lower annual profits and announced a strategic review that could lead to separating its retail and food divisions.
Hugo Boss (ETR: BOSSn) said sales and operating profit will likely land at the lower end of guidance, after reporting weaker-than-expected Q3 sales.
In contrast, Philips (AS: PHG) raised the upper end of its full-year margin forecast, supported by rising orders, steady growth, and improved profitability in the third quarter.
Domino’s Pizza (LON: DOM) reported strong same-store sales growth, boosted by higher prices, new menu launches, and loyalty programs that sustained demand amid tight consumer spending.
Meanwhile, Aker ASA (OL: AKER) — Norway’s industrial investment group — delivered a robust third quarter, driven by gains in artificial intelligence and real estate investments.
Oil Prices Slip on Supply Concerns
Oil prices moved lower on Tuesday following the OPEC+ decision to slightly increase production in December while pausing output hikes in early 2025.
Brent crude futures fell 1% to $64.27 per barrel, while U.S. West Texas Intermediate (WTI) declined 1% to $60.46.
Traders are awaiting the latest U.S. crude inventory report from the American Petroleum Institute (API) for further market cues.
The modest output increase by OPEC+ and persistent concerns over a global supply glut continue to weigh on sentiment in the energy markets.
