European stocks extended their losses on Thursday, with the STOXX 50 down 1.1% and the STOXX 600 shedding 0.9%. Investors weighed a fresh round of corporate earnings against surging oil prices and mounting geopolitical tensions in the Middle East, both of which continued to pressure sentiment. As widely anticipated, the ECB kept interest rates on hold.
On the corporate front, STMicroelectronics slumped more than 16% after missing profit expectations, making it the worst performer in the STOXX 600. Nestlé fell 7% after announcing an agreement to sell its stake in its Waters business to private equity firm Platinum Equity. UniCredit lost 4.4%, despite posting a 6.6% year-on-year increase in revenue and reiterating its target of acquiring Commerzbank in the fourth quarter. BNP Paribas slipped 2.1%, even though both profit and revenue topped forecasts.
In contrast, TotalEnergies advanced 2.9% after reporting its strongest quarterly profit in three years, while Dassault Aviation jumped 8.3% on the back of robust first-half earnings.
