European stocks trade lower, corporate results disappoint

The STOXX 50 fell by 0.5% and the broader STOXX 600 declined 0.4% on Thursday, extending losses from the previous session as renewed concerns over the global trade war resurfaced, weighing on investor sentiment.

European stocks trade lower, corporate results disappoint

Heightened geopolitical tensions and fears of a potential escalation in tariffs between major economies prompted a cautious mood in the markets. Investors also shifted their focus to the potential economic impact of impending tariffs, particularly on export-reliant industries, amid growing signs of a slowdown in global manufacturing activity. Meanwhile, corporate earnings continued to pour in, offering a mixed picture of the health of Europe's corporate sector. Shares of Siemens dropped 3.6% after the German industrial giant's second-quarter results disappointed investors. The company reported sluggish demand in key divisions and acknowledged "increased uncertainty in the economic environment," but left its full-year financial outlook unchanged, reflecting cautious optimism despite mounting headwinds.

Merck weighs on the market

Pharmaceuticals group Merck also weighed on the market, with its shares sinking more than 4% after the company lowered its full-year guidance, citing weaker-than-expected sales in some of its key business segments. Insurer Allianz slid 3.6% after the group missed quarterly profit expectations, blaming higher claims and investment income pressures, while it opted to maintain its existing forecast for the full year, providing little comfort to jittery investors. On a more positive note, Deutsche Telekom edged up 0.2% after the telecoms giant topped revenue estimates and lifted its full-year guidance, supported by strong performance in its U.S. unit and resilient demand for its mobile services in Europe. In addition, the luxury sector faced notable selling pressure as concerns over weaker demand in China and slowing global consumption trends intensified. Shares of LVMH fell 2.3%, while rival Kering dropped 3.6%, reflecting broader anxiety over the sustainability of growth in the high-end consumer space, which has been a key driver of European market gains in recent years.