Why it matters
- The STOXX 600 was at about 634.73 around 12:40 GMT on Tuesday, Oct. 20, down 0.76% from Monday, and the Euro STOXX 50 was down 1.12%, Yahoo Finance data showed, as renewed pressure on AI-related stocks weighed, Trading Economics said.
- Technology and industrials led losses. ABB was down about 5.4% after third-quarter results, Siemens about 3.6% and ASML about 3.1%, while Sanofi rose about 1.6%, Yahoo Finance data showed.
- France's 10-year yield rose to about 4.96%, near 24-year highs, and the gap over German Bunds widened past 150 basis points, Trading Economics said.
Session recap: what happened in this region's trading day, with sources.
European stocks fell for a second day on Tuesday, Oct. 20, as renewed pressure on AI-related stocks, rising oil prices and political unrest in France weighed on sentiment, Trading Economics said. The STOXX 600 was at about 634.73 around 12:40 GMT, down 0.76% from Monday's close, and the Euro STOXX 50 was down 1.12%, according to Yahoo Finance data.
| Market, about 12:40 GMT | Level | Change vs. Monday |
|---|---|---|
| STOXX Europe 600 | 634.73 | −0.76% |
| Euro STOXX 50 | 6,075.89 | −1.12% |
| DAX (Germany) | 25,072.06 | −0.98% |
| FTSE 100 (U.K.) | 10,679.62 | −0.79% |
| CAC 40 (France) | 7,787.69 | −1.02% |
| FTSE MIB (Italy) | 48,519.68 | −1.15% |
| IBEX 35 (Spain) | 18,916.70 | −0.64% |
| AEX (Netherlands) | 1,133.49 | −0.69% |
| SMI (Switzerland) | 14,373.82 | +0.04% |
Source: Yahoo Finance chart data. Levels are intraday and approximate; changes are from Monday, Oct. 19, closes.
Why are European stocks falling today?
Concerns about high valuations in AI-related stocks hit technology and industrial shares, Trading Economics said. Around 12:40 GMT, ABB was down about 5.4%, Siemens about 3.6%, Schneider Electric about 3.6%, ASML about 3.1% and Siemens Energy about 2.8%, Yahoo Finance data showed. ABB's third-quarter results were broadly in line with expectations, but the shares still fell, Trading Economics said.
Health care and software were the bright spots. Sanofi was up about 1.6% and SAP about 0.7%, Yahoo Finance data showed.
The decline extended Monday's 0.80% drop in the STOXX 600, when protests in France weighed on banks; see our Europe Monday recap. European Central Bank President Christine Lagarde warned that rising bond yields could weigh on growth and inflation, Trading Economics reported.
Why is the CAC 40 down?
Renewed selling in global technology and AI stocks weighed on Paris, while investors also watched ongoing social unrest over public services and the cost of living ahead of April's presidential election, Trading Economics said. Legrand was down about 3.3% around 12:40 GMT, Yahoo Finance data showed, and STMicroelectronics and Safran also fell, Trading Economics said. EssilorLuxottica rose ahead of its earnings.
How is the FTSE 100 trading?
The FTSE 100 was down 0.79% around 12:40 GMT, Yahoo Finance data showed. Banks including HSBC, Lloyds, NatWest and Standard Chartered fell, and Rolls-Royce and BAE Systems lost more than 1%, Trading Economics said. Anglo American was down about 1.4%, Yahoo Finance data showed, even after raising its annual diamond production forecast, Trading Economics said.
U.K. payroll employment rose by 13,000 in September, against an expected 8,000 decline, and the unemployment rate eased to 4.7% in the three months to August, Trading Economics reported.
What are bonds and the euro doing?
France's 10-year yield rose to about 4.96%, near 24-year highs, as nationwide protests led to curfews in several cities and investors awaited a Moody's credit rating review, Trading Economics said. The spread between French and German 10-year yields moved above 150 basis points, its widest since the euro-area debt crisis. Germany's 10-year Bund yield fell to about 3.41% on safe-haven demand, it said.
The euro was at about $1.1227 and the pound at about $1.3368 around 12:52 GMT, Yahoo Finance data showed.
What comes next for European markets?
The ECB holds its next policy meeting Oct. 28-29. Asia's session is in our Asia Tuesday recap, U.S. futures and earnings are in our day-ahead guide, and live levels are on the markets page.
Follow the rest of the trading day on our global market today page, with the latest Asia, Europe and Americas session recaps.
Sources
- Trading Economics, Euro area stock market
- Trading Economics, U.K. stock market (FTSE 100)
- Trading Economics, France stock market (CAC 40)
- Trading Economics, Germany stock market (DAX)
- Trading Economics, France 10-year bond yield and Germany 10-year bond yield
- European Central Bank, Meetings of the Governing Council
- Yahoo Finance, chart data for the STOXX Europe 600, Euro STOXX 50, DAX, FTSE 100, CAC 40, FTSE MIB, IBEX 35, AEX, SMI, ABB, Siemens, Schneider Electric, ASML, Siemens Energy, Sanofi, SAP, Legrand, Anglo American, EUR/USD and GBP/USD