Europe's STOXX600 falls as autos, telecoms lead broad sell-off
European stocks took a downturn on Friday, primarily influenced by the disappointing outlook from Volkswagen and considerations surrounding Airtel Africa's IPO. This trend notably affected auto and telecom sectors. Despite oil prices stabilizing, energy shares were down on the week, alongside increased caution from central banks amid inflation worries. Meanwhile, healthcare and insurance sectors…
Europe's STOXX 600 index suffered a broad sell-off on Friday, with automobile and telecom shares leading the decline. The pan-European index dropped 1.1% to 635.45 points, erasing nearly all the gains from the previous two days and ending the week with a 0.6% decrease. The FTSE 100 and DAX also fell by 1.5% and 1.6% respectively.
The automotive and parts sector experienced the steepest decline, with Volkswagen recording its largest one-day loss since September 2025, a 5.6% drop. The company announced a €10 billion ($11.5 billion) adjustment, citing one-off items from its stake in Porsche, job cuts provisions, and a struggling Chinese market. Porsche shares plummeted 4.9%.
Telecom stocks dropped 3.3%, marking the sharpest single-day decline since April 2025, with Airtel Africa falling 11.3% to become the STOXX's top loser after Bloomberg News reported a potential downsizing of its London IPO unit. The food and beverage sector saw a 1.9% decline, with Nestle losing 2.6% after Russia seized control of its Swiss assets.
Oil prices stabilized after initially losing ground on the Friday due to concerns about a widening Middle East conflict. Nonetheless, energy shares declined by 0.7% and slipped 0.5% for the week. A respite in the bond market and the easing of crude prices contributed to the week's bullish sentiment in risk assets. Central bank headlines, including the US Federal Reserve's rate hike and the Bank of England's decision to keep rates unchanged, fueled investor confidence. Nonetheless, the policymakers' actions suggested they were getting ahead of inflation.
The European healthcare sector performed best during the week, followed by insurance, while banks and automotive stocks suffered the most. Airtel Africa, Orange, and LPP were among other notable stocks with significant gains or declines.
Written by urgent.news from The Economic Times - Top News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
