European stocks traded lower on Thursday, with both the STOXX 50 and STOXX 600 down about 0.6%, extending the previous session’s losses as oil prices continued to rise and there were no signs of an imminent resolution to the war with Iran. Almost all sectors were in negative territory, with consumer cyclicals, financials, and healthcare among the weakest performers.
BMW shares fell 2.3% after the automaker warned that tariffs are expected to weigh on its 2026 earnings. Other major decliners included HSBC Holdings (-4.3%), Roche (-3.7%), and LVMH (-1.1%). Defense stocks were a notable exception to the broader sell-off, with Leonardo climbing 7.8% and Rheinmetall gaining 3.5%.
Elsewhere, Daimler Truck added 0.6% after stating it expects broadly stable margins in 2026. Generali rose 0.4% after reporting a 12% increase in annual net profit, while RWE advanced 0.8% as it outlined a €35 billion expansion plan. Meanwhile, Zalando jumped more than 5% following the announcement of a €300 million share buyback program.
