European stocks fall on Thursday

European equities slipped into negative territory on Thursday, with both the STOXX 50 and STOXX 600 down 0.6%, extending the cautious tone that dominated the previous session.

Investor sentiment remained fragile as traders reassessed the global monetary policy outlook, particularly from the US Federal Reserve, with several Fed officials scheduled to speak later in the day. Market participants are watching closely for any signals that might reinforce or challenge expectations of further rate cuts into year-end.

Economic releases offered little reason for optimism. Germany’s GfK survey showed consumer confidence stuck at historically weak levels, underscoring household caution amid inflationary pressures and geopolitical uncertainty.

French data also fell short of expectations, highlighting the unevenness of the Eurozone recovery. In contrast, auto sector figures provided a rare bright spot, as EU passenger car registrations rose in August, suggesting demand is stabilizing after months of subdued activity.

At the sector level, performance was mixed. Healthcare led the losses, with Siemens Healthineers tumbling nearly 6% after US authorities announced fresh national security investigations into imports of medical supplies, robotics, and industrial machinery—a move that rattled sentiment across the broader healthcare and industrial space. Banks and energy stocks also weakened in tandem with risk-off sentiment.

On the upside, retailers provided some relief. H&M surged about 9% after delivering a stronger-than-expected third-quarter profit, boosting confidence in discretionary spending resilience despite macro headwinds. Tech shares were relatively stable, with investors hesitant to add risk ahead of upcoming policy signals.

Overall, the downbeat mood reflects a market still grappling with global uncertainty: cautious central banks, sluggish consumer sentiment in Europe’s largest economies, and heightened regulatory and geopolitical risks. Traders are likely to remain defensive until clearer guidance emerges from policymakers and fresh data offers firmer evidence of sustained growth.