Stellantis shares drop 14% after cutting its 2024 guidance.
Major European indices, including the FTSE 100, DAX, and CAC 40, are all in negative territory.
German inflation eases, raising expectations for further ECB rate cuts.
U.K. house prices rise at the fastest annual rate in two years.
European stocks began the final trading session of September in negative territory, with the pan-European Stoxx 600 index down 0.75% as of 3:37 p.m. London time. Nearly all sectors posted losses, with auto stocks taking the biggest hit, down 3.7%.
Key European indices reflected the downward trend:
FTSE 100 fell 0.83% to 8252.02.
DAX dropped 0.65% to 19,346.36.
CAC 40 saw a sharper decline of 1.71%, landing at 7658.54.
Shares of Stellantis, the maker of Dodge, plunged 14% after the automaker revised its 2024 annual guidance, citing deteriorating global industry conditions and increasing competition from China. Other automakers also posted significant losses:
Source: Tradingview
Renault fell 4.7%.
Porsche dropped 4.4%.
Volkswagen declined 2.3%.
The weakness in the auto sector weighed heavily on European markets, contributing to the overall negative sentiment.
The sluggish start for European markets comes after a strong performance on Friday, when the Stoxx 600 index hit a record high, buoyed by China's announcement of economic stimulus measures. However, Monday's session saw investors adopting a more cautious stance as uncertainties about global growth remain.
In Germany, inflation eased to 1.8% in September, down from 2% in August. This lower-than-expected figure increases the likelihood of further European Central Bank (ECB) rate cuts. Last week, inflation in France and Spain also dropped below the ECB's 2% target, reinforcing expectations of additional monetary easing.
Meanwhile, in the U.K., house prices surged at their fastest annual pace in two years, with a 3.2% rise in September, according to Nationwide. The country's economy, however, grew more slowly than expected in the second quarter, with GDP growth revised down to 0.5%.
In Asia, stocks in mainland China spiked over 8%, while Japan’s Nikkei 225 fell nearly 5% as key economic data from both countries was digested.
Source: Tradingview
In the U.S., major indices were slightly lower as investors await further developments in the economic landscape, particularly around Federal Reserve policies.
European markets are facing significant headwinds as the month of September draws to a close, with autos leading the losses. As global growth concerns persist, and with key economic data on the horizon, investors will continue to closely monitor developments, particularly from central banks and major economic regions like China and the U.S.
