European stocks fall on mixed economic signals and global growth concerns

European shares fell on Thursday, dragged down by mixed economic data that heightened concerns about global growth. France’s CAC 40 index led declines among domestic indices. The pan-European STOXX 600 index fell 0.5%, with significant declines in sectors such as healthcare, chemicals and personal goods.

Investor sentiment was weighed down by a combination of positive German industrial orders data and a year-over-year decline in eurozone retail sales. Additional signs of weakness in the U.S. labor market contributed to a cautious mood ahead of U.S. nonfarm payrolls data due Friday.

Senior analyst at Swissquote Bank, Ipek Ozkardeskaya, stressed that while industrial orders were good news for Germany, the market remains focused on US employment data, leading to continued sell-offs in both the US and European markets. Luxury stocks suffered as France’s CAC 40 fell 0.9%, with high-end brands such as LVMH and Hermes International posting significant declines.

The appointment of Michel Barnier as French prime minister brought some relief to bank stocks and government bonds amid political uncertainty following President Emmanuel Macron’s call for early elections. But the overall impact on investor confidence remains cautious.

While Germany’s DAX index was flat, interest-sensitive utilities and real estate emerged as the biggest gainers. Investors were expecting rate cuts from both the European Central Bank and the Federal Reserve, with the ECB expected to cut its deposit rate by 25 basis points in September and December.

Among individual stocks, Airbus SE fell 1.4% after an inspection notice from the European aviation safety regulator. Meanwhile, British homebuilder Vistry rose 8.5% after announcing a share buyback program. Technology shares continued to fall, reflecting weakness in U.S. semiconductor stocks, with ASML Holdings down 2.2%.

(Based on information from the agency.)