FX.co ★ European Stocks Fall

European stock markets experienced significant declines on Tuesday. The STOXX 50 index dropped by 1.4%, while the STOXX 600 decreased by 1.1%, reflecting a cautious sentiment following modest gains the day before. On a global scale, excitement over AI-related stocks subsided due to mixed corporate earnings and cautionary notes from Wall Street executives regarding potential market corrections stemming from inflated valuations. Telefónica saw a steep decline of over 8%, positioning it at the lower end of major indexes, after it announced plans to reduce its 2026 dividend by half. Similarly, Edenred fell by 8.5% after it forecasted a slowdown in its core annual profit for 2026. Some of the major companies also experienced significant losses, with ASML Holding down by 2.2%, LVMH dropping 1.2%, SAP decreasing by 1.3%, and Novo Nordisk slipping by 0.5%. On a brighter note, BP gained 0.5%, owing to profits that surpassed expectations, while Philips saw a minor rise of 0.6% after its revenue aligned with forecasts. Geberit was among the session's standout performers, advancing 2% after it upgraded its full-year outlook.