European Markets Fall After ECB Decision as Investors Weigh Earnings and Trade Talks

European stock markets opened lower on Friday as investors digested a mix of corporate earnings, economic data, and the European Central Bank’s (ECB) latest policy stance. The ECB kept its key deposit rate unchanged at 2% for the third consecutive meeting, maintaining a cautious tone despite signs of modest growth in the eurozone. By mid-morning, the pan-European Stoxx 600 was down 0.16%, with London’s FTSE 100 falling 0.28%, Germany’s DAX off by 0.3%, and France’s CAC edging 0.05% lower.

Investor sentiment was also shaped by U.S. earnings overnight. Amazon’s third-quarter results impressed markets, with its cloud computing division posting a 20% revenue jump, pushing shares up more than 13%. Apple followed with stronger-than-expected fourth-quarter results, lifting its stock by around 3%. These upbeat results from tech giants provided some relief amid lingering concerns about global economic resilience and inflation pressures.

Back in Europe, new data from Eurostat showed that the eurozone economy grew 0.2% in the third quarter, slightly above forecasts. While modest, the uptick suggested resilience in the face of slowing global demand and high borrowing costs. The ECB’s decision to pause rate changes reflects a delicate balance between supporting growth and controlling inflation, which remains above the central bank’s 2% target in several member states.

Globally, attention also turned to geopolitical developments. U.S. President Donald Trump met Chinese President Xi Jinping in Asia, where the two leaders agreed on a one-year deal involving rare earths and critical minerals. Washington also announced plans to cut certain tariffs on Beijing, signaling a potential thaw in trade tensions. Markets in Asia responded positively, with Japan’s stocks leading gains after the meeting.

Commodities saw mixed movement amid shifting investor sentiment. Brent crude futures slipped 0.56% to $60.24 a barrel, marking a third straight monthly decline, while gold prices dipped below $4,000 an ounce following the Federal Reserve’s latest rate cut. Investors are now watching for earnings from Chevron, Exxon Mobil, and Colgate-Palmolive later in the day, which could further influence global market direction heading into November.

source: cnbc