FX.co ★ European Stocks Follow Wall Street Lower after US GDP Data

On Wednesday, European stocks experienced a downturn as investors grappled with mixed earnings reports alongside an unexpected contraction in US GDP. The Stoxx 600 declined by 0.2%, interrupting a six-day winning streak, and the Stoxx 50 dropped by over 1%. The automotive sector, which initially experienced gains, retreated by 1.2% as concerns over earnings overshadowed President Trump's decision to ease certain auto tariffs. The healthcare sector, on the other hand, performed strongly, with the Stoxx Healthcare index rising 1.3%. This gain was driven by companies like GSK, AstraZeneca, and Smith+Nephew, which all indicated solid preparedness for navigating the impact of US tariffs. Trump's trade policies have emerged as a key concern in first-quarter earnings, with numerous firms expressing caution over the uncertainty it brings. Meanwhile, UBS saw its shares climb after reporting a profit of $1.692 billion, exceeding expectations, whereas Stellantis faced a decline following its suspension of full-year guidance.