European Markets Slip as Momentum Fades; L’Oréal Shares Drop 6% Amid Weak Growth and Tariff Pressure

European stocks traded lower on Wednesday as the week’s earlier optimism faded, with investors digesting fresh corporate earnings and geopolitical uncertainty. The pan-European Stoxx 600 index slipped 0.23% by mid-morning in London, while Germany’s DAX fell 0.3%, France’s CAC 40 dropped 0.6%, and Italy’s FTSE MIB lost 0.8%. The U.K.’s FTSE 100, however, stood out as the only gainer, rising more than 0.6% amid stronger domestic earnings.

Among the standout movers, Barclays surged 4% after the British lender raised its outlook and announced a £500 million ($667 million) share buyback following its upbeat third-quarter earnings. Meanwhile, beauty giant L’Oréal saw its shares tumble over 6% after reporting slower-than-expected quarterly growth. The French cosmetics maker posted 3.4% like-for-like sales growth, but weaker demand in North America and higher tariffs weighed on performance. Despite that, the company reported stronger results in China and confirmed plans to acquire Kering’s beauty business, the owner of Gucci.

Economic data from the United Kingdom provided some relief for investors, as inflation remained steady at 3.8% in September, defying expectations of a slight increase. However, broader European sentiment cooled as optimism around a possible Ukraine peace deal dimmed. Reports indicated that planned talks between U.S. President Donald Trump and Russian leader Vladimir Putin in Hungary had been postponed, dampening hopes of near-term diplomatic progress.

In corporate news, Italian banking giant UniCredit delivered a strong earnings surprise, reporting a net profit of €2.6 billion ($3.02 billion) for the third quarter, surpassing analyst expectations. CEO Andrea Orcel described the period as a “record quarter,” and hinted at plans to increase the bank’s stake in Greece’s Alpha Bank to around 30%. Orcel also reaffirmed his interest in Germany’s Commerzbank, where UniCredit currently holds a 26% stake, though previous takeover efforts have faced political resistance from Berlin.

Investors are now turning their attention to a wave of upcoming earnings reports from major European firms including Reckitt Benckiser, Heineken, DNB Bank, Svenska Handelsbanken, and Aker. Software giant SAP is scheduled to release its quarterly results later in the evening, which could further shape sentiment across the European market.

source: cnbc