FX.co ★ European Stocks Close Sharply Lower

On Thursday, European stocks initially showed gains but ultimately ended the day with significant losses, driven by a series of disappointing corporate earnings reports and ongoing evaluation of the European macroeconomic landscape. The STOXX 50 experienced a decline of 1.3%, closing at 5,325, while the STOXX 600 decreased by 0.7% to settle at 546. AB InBev saw a sharp drop of 11.6% after reporting reduced sales volumes in its key markets, Brazil and China. Similarly, Ferrari suffered an 11.7% plunge, its most significant drop since its public listing in 2016, due to underwhelming earnings and revenue figures. Likewise, Sanofi fell 7% as a result of a revenue shortfall, and Schneider Electric declined by 4.5% despite promising performances in their data center operations, attributed to a reduction in margins. Hermes and Adidas continued their earnings-driven downturn from the previous day, each falling more than 4%. Conversely, BBVA surged 8% on positive financial results. In U.S. news, the Federal Reserve maintained the status quo on interest rates, yet hawkish comments from Chair Powell dampened the likelihood of a rate cut in September.