European stocks slip as Mercedes cuts forecasts and Brent holds near 115 dollars

Opening trade in Europe

European exchanges started Tuesday, 27 October, in negative territory. At 10:00 Italian time Milan's FTSE MIB stood just above 49,000 points, down 0.33%, while Paris slipped 0.35%, Frankfurt 0.16% and Madrid 0.29%. A later update put the FTSE MIB at 48,963, down 0.45%, which left the index below the 49,000 mark. London was the weakest market in one early report at a 1% drop, but losses eased through the morning, and the latest figures in the articles show Milan down 0.15% and Paris flat at -0.06%. Traders were watching Wall Street futures, which had turned positive.

Carmakers and banks weigh on the sector

Mercedes shares fell 5.3% after the carmaker cut its 2026 forecasts, and the move dragged the whole auto sector lower. Volkswagen and BMW each lost 2.6%, while Stellantis dropped 1.5%. Porsche bucked the trend, gaining 1.4% after a quarterly rebound and confirmed forecasts. Banks were also weaker while the government drafts the 2027 budget law, which could raise the tax burden on the sector. In Milan, Ferretti fell 3.3% after cutting its guidance, with nine-month net revenues roughly flat (up 0.2%) and margins lower. Campari lost 1.6%, while Snam and Italgas gained 2.3%, STMicroelectronics 2% and Amplifon 1.6% after Rothschild started coverage with a buy rating and a target price well above the share price.

Tech rebound on the Anthropic listing

Asian markets closed mostly higher, led by technology stocks in Japan and South Korea. Tokyo's Nikkei closed up 1.73% at 63,268.37, a gain of 1,078 points, and Seoul rose 3%. Another report put the Tokyo close at 1.78%. The optimism came from Anthropic's plan to list on the Nasdaq, after the AI company filed documents to go public with a target of 100 billion dollars. Mainland China was weaker, with Shanghai down 1.35% and Shenzhen down 2.5% mid-session, while Hong Kong slipped 0.82% and HSBC fell 6% at one point after results slightly below expectations. Seoul had lost 16% over the past three months, which reflects investor concern about AI costs and the durability of listed companies.

Tokyo Nikkei (close)1.73%

Seoul3%

Hong Kong (still open)-0.82%

Shanghai (in progress)-1.35%

Shenzhen (in progress)-2.5%

Tokyo Nikkei (close)

1.73 %

Seoul

3 %

Hong Kong (still open)

-0.82 %

Shanghai (in progress)

-1.35 %

Shenzhen (in progress)

-2.5 %

Data from the article text

Bonds, gas and metals

Brent crude was quoted at 115 dollars a barrel in the latest update, after touching 117 earlier and then easing toward 111. Some optimism over US-Iran relations helped steady oil earlier in the session. Dutch TTF gas for November delivery traded at 96.02 euros per megawatt hour, down 0.52% but close to multi-year highs on worries about winter supply. Gold fell 0.62% to 4,012 dollars an ounce, while silver and platinum dropped more sharply.

Gold-0.62%

Silver-2.74%

Platinum-3.19%

Gold

-0.62 %

Silver

-2.74 %

Platinum

-3.19 %

Data from the article text

The French OAT yield stood at 4.49% and the Italian BTP at about 4.5%, with the BTP spread over the German Bund approaching 115 basis points as investors sought the Bund as a safe haven. INSEE reported that French household confidence fell to 80 points, down five and well below its long-term average of 100, the lowest level since June 2013.

Central banks and earnings ahead

Central banks dominate the agenda. Most traders expect the Federal Reserve to keep rates unchanged after its increase in September, and the ECB is also expected to hold. Alphabet and Microsoft report results on Wednesday, 28 October, followed by Amazon and Intel on Thursday, 29 October. Microsoft has offered 60,000 employees voluntary departures, and Stellantis publishes its third-quarter accounts on Wednesday. Israel holds parliamentary elections on Tuesday, which are seen as a referendum on Prime Minister Benjamin Netanyahu. In Brazil, the real had fallen 10% against the dollar and the São Paulo index had dropped 17% after Lula's presidential victory was confirmed, and the French parliament is voting on its budget bill.