European stocks fell for the third consecutive session, with French markets impacted by Moody's downgrade of France's credit rating. The Stoxx Europe 600 Index dropped 0.1%, driven by a significant decline in the automotive sector. However, the healthcare sector outperformed, boosted by Novo Nordisk's (NVO, Financial) announcement to invest 12 billion DKK ($1.2 billion) in a new factory in Denmark.
Ongoing political instability in France and Germany, along with sluggish regional economic growth, have pressured European markets throughout the year. The Stoxx 600 is set to underperform compared to the S&P 500. The CAC 40 Index fell 0.7% as French private sector activity declined for the fourth consecutive month, marking a 2.6% year-to-date decrease, underperforming the broader European market.
Investors are also preparing for the final interest rate decisions of the year from the Federal Reserve, Bank of Japan, and Bank of England.
