Solid Gold Berjangka – European stock markets fell sharply in Thursday’s trading session (October 22), with the STOXX 50 index dropping 1.5% to its lowest level since mid-June, while the STOXX 600 declined by 0.9%. The downward pressure was triggered by disappointing results from several major U.S. corporations, which reignited concerns regarding the valuations of artificial intelligence (AI)-related stocks and sparked a global sell-off.
Market sentiment was further dampened by a rise in oil prices following another attack on facilities in Saudi Arabia. This development heightened concerns over energy supply risks and inflationary pressure, prompting investors to become increasingly cautious regarding the outlook for economic growth and interest rate policies.
On the corporate front, shares of Hermes plunged 6.6% after the company reported zero sales growth in the region that includes China. Roche shares fell 1.3% despite posting better-than-expected sales, while Thales declined 1.7% even after raising its full-year performance forecast.
Barclays shares edged down 0.2%, despite the bank recording a 12% year-on-year increase in profit. Meanwhile, shares of SAP remained relatively stable after the company raised its full-year outlook, reflecting a more selective market response to corporate earnings reports.
Amid the broader market weakness, Nestle managed to gain 2.3% following strong third-quarter sales growth. Demand for snacks and pet food in emerging markets served as a key driver; however, overall sentiment in European markets remains clouded by concerns over AI valuations, high oil prices, and the global economic outlook. (srh)