European stock markets experienced a significant downturn in Thursday trading, with the Stoxx Europe 600 dropping 1.32%. The Swiss Market Index fell 1.57%, France's CAC decreased by 1.17%, the FTSE in London declined by 0.79%, and Germany's DAX closed 1.11% lower. In October, the euro area annual inflation saw an increase of 2.0%, a rise from 1.7% in September, as revealed in a flash estimate from Eurostat, the statistical office of the European Union.
The services sector recorded the highest annual rate at 3.9%, remaining unchanged from September, while food, alcohol, and tobacco saw a rise to 2.9% compared to the prior month’s 2.4%. Eurostat also indicated that the seasonally adjusted unemployment rate in the euro area for September sat at 6.3%, unchanged from August and down from 6.6% a year prior.
In the EU, the unemployment rate was recorded at 5.9% in September, also holding steady from the previous month, and a decline from 6.1% a year ago. In France, the consumer price index saw an estimated rise of 1.2% in October, following a 1.1% increase in September, as per the Institute of Statistics and Economic Studies. Germany's retail sales demonstrated growth of 1.2% in September compared to the previous month and an increase of 3.8% from the same month last year, according to the Federal Statistical Office. In corporate news, shares of Societe Generale surged 11% in Paris after announcing the appointment of Sabadell Chief Financial Officer Leopoldo Alvear as its new CFO to replace Claire Dumas, starting on January 7. DS Smith’s shares skyrocketed by 14% in London after the company announced that retailer Zalando has extended its agreement with them as the preferred supplier for sustainable and fiber-based e-commerce services.
Conversely, shares of Zalando fell by over 4% in Frankfurt. Stellantis disclosed Q3 net revenue of 32.96 billion euros ($35.77 billion), a drop from 45.14 billion euros a year earlier. The European automaker attributed this decrease to lower shipments, an unfavorable sales mix, along with pricing and foreign exchange impacts.
Stellantis shares ended over 2% higher in Paris Additionally, the European Commission announced a fine of 462.6 million euros ($502.8 million) against Teva Pharmaceutical Industries for allegedly hindering competition concerning Copaxone, a medication for multiple sclerosis. Teva announced plans to appeal both the ruling and the fine imposed..