European stock markets recorded their largest decline in over a month, driven by disappointing corporate earnings. The Stoxx Europe 600 Index dropped 1.3%, marking its biggest single-day fall since September 20. Key sector indices across the board fell, while France's stock market declined by 1.1%, despite better-than-expected economic performance in the third quarter.
The UK's FTSE 250 Index, however, rose by 0.3% following the announcement of the first budget by UK Chancellor Rachel Reeves. The budget aims to raise £40 billion ($52 billion) through increased taxes, including capital gains tax and employer national insurance contributions, to boost public services and address the fiscal gap left by the previous Conservative government.
The FTSE AIM 100 Index, which includes the largest stocks on the UK Alternative Investment Market, experienced its largest gain since April 2020.
Among companies reporting earnings, UBS (UBS, Financial) share prices fell after issuing risk warnings. Shares of Moncler SpA declined following the Italian luxury jacket maker's third-quarter revenue missing expectations. Davide Campari-Milano NV suffered a 19% drop in stock price, its largest single-day fall ever, after issuing weak sales forecasts.
Pharmaceutical company Novo Nordisk reversed earlier losses caused by U.S. peer Eli Lilly lowering its earnings guidance.
