By Harshit, LONDON, NOV. 6
European stocks edged slightly lower on Thursday as investors parsed a fresh round of major corporate earnings results and awaited key central bank decisions. The pan-European Stoxx 600 was down around 0.30% by midday, with most major indices and sectors trading in negative territory. France’s CAC 40 slid 0.84%, Germany’s DAX declined 0.44%, and the U.K.’s FTSE 100 dipped 0.24%. Spain’s IBEX 35 was one of the few outliers, posting a modest 0.18% gain.
The cautious market tone comes amid a wave of quarterly corporate reports from some of the region’s biggest companies, along with continuing global uncertainty around U.S. trade policy ahead of a closely watched Supreme Court decision.
AstraZeneca Maintains Cautious Guidance Despite Strong Quarter
Pharmaceutical giant AstraZeneca reported stronger-than-expected third-quarter revenue and profit, with total revenue up 10% year-over-year at constant currency. Despite the solid performance, the company elected to keep full-year guidance unchanged.
CEO Pascal Soriot said the company is still facing macroeconomic headwinds, particularly in China and Latin America. Speaking to CNBC, Soriot explained that AstraZeneca would prefer to maintain conservative expectations and potentially outperform rather than revise forecasts prematurely.
Soriot also discussed ongoing alignment with U.S. policy directions, emphasizing the company’s strategy of increasing domestic manufacturing and research investment in the United States. “President Trump wants to rebalance the cost and risk of innovation,” Soriot noted. “We agree the cost should be shared fairly among wealthy countries.”
AstraZeneca shares hovered slightly above the flat line, last trading around 0.3% higher.
Rheinmetall Benefits from Rising Defense Demand
German defense manufacturer Rheinmetall continued to see elevated demand tied to heightened military spending among NATO members and ongoing support for Ukraine. The company reported third-quarter sales of €2.78 billion, just below expectations, while operating profit rose nearly 20% to €360 million.
Rheinmetall highlighted record sales of €2 billion from its weapons and ammunition division in the first nine months of the year. Orders from European governments have increased significantly since the start of the war in Ukraine, and the trend remains strong.
Shares in Rheinmetall rose 2.2% in Thursday trading.
DHL Beats Estimates but Warns of Lower U.S. Trading Volumes
Logistics group DHL also topped profit expectations, but CEO Tobias Meyer reported a noticeable decline in U.S. shipping volumes. Meyer warned that global trade conditions remain volatile and that the company is preparing for continued fluctuations across regions.
Despite the caution, DHL shares jumped 5.6% in early trade, suggesting investors welcomed the earnings beat and cost discipline.
CommerzBank and Diageo Face Pressure
German lender CommerzBank saw its shares fall 2.9% after reporting a 7.9% decline in net profit for the third quarter. CEO Bettina Orlopp attributed the earnings miss primarily to tax-related effects, adding that the bank had also faced notable restructuring expenses earlier this year. However, the bank raised its full-year net interest income guidance to €8.2 billion, citing stronger lending performance.
Meanwhile, beverage group Diageo dropped 6% after cutting its full-year outlook, citing weakness across both China and the U.S. The company reiterated that U.S. tariffs are still expected to result in a $200 million financial hit.
Central Banks Hold Steady
Norway’s central bank held its benchmark rate at 4% earlier in the day, while the Bank of England also kept rates unchanged. The pound rose slightly against the dollar, trading around $1.3073, while yields on U.K. government bonds eased following the announcement.
Global Markets Watch U.S. Tariff Developments
Investors are also watching the U.S. Supreme Court, which is reviewing the legality of former President Donald Trump’s sweeping tariff actions. Justices signaled skepticism during Wednesday’s hearing, raising the possibility that some tariffs could be rolled back. Market analysts note that a reversal could boost global equities in the short term while reshaping international trade dynamics.