European stock markets opened in negative territory on Thursday as investors braced for a packed day of economic updates, major corporate earnings, and the European Central Bank’s latest policy decision. The pan-European Stoxx 600 fell nearly 0.3% shortly after the opening bell in London, while the UK’s FTSE 100 slipped 0.4% and Italy’s FTSE MIB dropped around 0.5%. Germany’s DAX stood out, rising 0.2% in early trade.

The cautious mood comes amid a wave of third-quarter earnings from major European firms. Energy giant Shell reported a sharp decline in profit to $5.4 billion but still managed to beat analyst expectations, citing strong operations and announcing a fresh $3.5 billion share buyback plan. Meanwhile, Airbus posted a robust third quarter with revenue climbing 14% to €17.8 billion and operating profit surging 42%, driven by strong aircraft deliveries and defense demand, lifting its shares 2.5% in early trading.

Market participants are also watching key data releases closely, including flash euro zone GDP and unemployment figures, alongside inflation data from Spain and Germany. Economists expect the European Central Bank to hold rates steady at 2%, calling Thursday’s decision a “non-event.” However, traders remain alert to any signals about the ECB’s future policy path as inflation and growth pressures continue to shape Europe’s economic outlook.

Globally, attention turned to Asia where U.S. President Donald Trump and Chinese President Xi Jinping met in South Korea. The two leaders reportedly reached a one-year agreement on rare earths and critical minerals, while Washington pledged to reduce fentanyl-related tariffs on Beijing to 10%. Despite the diplomatic progress, Chinese and Hong Kong markets turned lower after the meeting, reflecting investor uncertainty over the longer-term implications.

Back in the U.S., markets were digesting fresh remarks from Federal Reserve Chair Jerome Powell, who warned that a December rate cut is “far from a foregone conclusion.” The Fed had earlier trimmed its benchmark rate by 25 basis points to a range of 3.75%-4%. U.S. stock futures edged lower as investors reacted to Powell’s cautious tone and mixed earnings results from tech giants Alphabet, Meta, and Microsoft.

source: cnbc