Porsche Shares Drop 7% as Profit Outlook Cut; European Markets Slide Amid U.S. Visa Crackdown

European stock markets slipped on Monday morning as investors reacted to a mix of corporate news and political developments. The pan-European Stoxx 600 index fell 0.2% shortly after the opening bell, with most sectors trading in the red. Auto manufacturers and parts suppliers bore the brunt of the losses, leading to the decline across the region.

Germany’s luxury carmaker Porsche AG led the downturn in auto stocks, tumbling 6.7% in early trading. The drop followed the company’s decision to cut its 2025 profitability outlook and postpone the launch of new electric models due to weaker-than-expected demand. The move signaled growing challenges for Europe’s premium auto sector at a time of slowing global growth.

The news also hit Volkswagen, Porsche’s largest shareholder, which saw its shares fall 5.5%. Analysts said the dual setback underscored investor anxiety about how traditional carmakers will navigate the transition to electric vehicles amid a cooling market. The Stoxx Europe Automobiles and Parts index slumped 2.3% by 8:15 a.m. London time, reflecting widespread pressure on the sector.

Adding to market jitters, U.S. President Donald Trump’s administration announced a steep increase in H-1B visa application fees, raising the cost to $100,000 per application effective Sunday. The abrupt policy change is designed to protect American jobs but has left multinational companies scrambling to assess recruitment plans. Tech giants, which rely heavily on skilled workers from countries like India and China, are expected to be hit hardest.

India criticized the move, warning of “humanitarian consequences” from disrupted family plans. Investors also eyed fresh economic data, with a flash estimate for euro zone consumer confidence scheduled for release later in the day. Meanwhile, Asia-Pacific markets traded mixed, with China’s central bank keeping its loan prime rate unchanged for a fourth straight month, signaling steady but cautious policy in the world’s second-largest economy.

source: cnbc