European markets negative as ECB holds rates; euro zone growth beats expectations

LONDON — European stocks were lower on Thursday, despite the latest figures showing the bloc’s economy grew more than expected and the European Central Bank’s decision to hold interest rates.

The pan-European Stoxx 600 shed over 0.5% by 1:21 p.m. in London (9:15 a.m. ET), with most major bourses and sectors in the red.

The U.K.’s FTSE 100 index was over 0.4% lower, France’s CAC 40 was down 0.9% and Italy’s FTSE MIB traded around 0.8% lower. Germany’s DAX was last seen down almost 0.3%.

It’s another busy day for earnings on Thursday with third-quarter results coming from TotalEnergies, Volkswagen, Crédit Agricole, Société Générale, Anheuser-Busch InBev, BBVA and Schneider Electric.

Novo Nordisk had over 4% knocked off its share price, extending previous losses, amid news it made an unsolicited bid for U.S. drug maker Metsera, which Pfizer made an offer for last week.

Shell reported a significant drop in third-quarter profit but beat analyst expectations, citing a strong operational performance. It posted adjusted earnings of $5.4 billion for the quarter, and announced another $3.5 billion in share buybacks over the next three months, maintaining the pace of its shareholder returns. Shares in the energy major dipped almost 0.6% in morning trade but clawed back some earlier losses through the session. They were last seen trading 0.1% below the flatline.

Aerospace and defense company Airbus, meanwhile, reported a strong third quarter late on Wednesday amid Europe’s rush to build out its defense capabilities. Its results came in above analyst estimates, with revenue jumping 14% to 17.8 billion euros ($23.5 billion) and operating profit up 42% at 1.75 billion euros. The figures were driven by an increase in commercial aircraft deliveries, currency hedging and its helicopter services, the company said. Its stock price advanced 2.7% during Thursday’s session.

Dutch lender ING Groep gained almost 5.3% on Thursday after posting net profits of 1.79 billion euros in the third quarter, above analysts’ expected 1.66 billion euros. Standard Chartered, meanwhile, advanced above1.7%, after its third-quarter earnings report showed pre-tax profits of $1.8 billion, beating the $1.5 billion forecast by analysts.

Elsewhere, the euro zone economy grew a better-than-expected 0.2% in the third quarter, which narrowly beat estimates of 0.1%, according to flash data from Eurostat on Thursday.

The European Central Bank also held its key deposit facility rate at 2% for the third consecutive time, having last cut rates in June. Economists had branded it a “non event” ahead of the announcement.

Other data releases include unemployment figures, as well as inflation data from Spain and Germany.

Trump said he had reached a one-year agreement with Xi on rare earths and other critical minerals, and that Washington will cut fentanyl-related tariffs on Beijing to 10% after their meeting in South Korea. Shares of U.S.-listed firms Critical Metals, USA Rare Earth and Energy Fuels rose in premarket trade on Thursday.

Chinese and Hong Kong markets fell overnight, reversing earlier gains, after the meeting concluded, while other Asia-Pacific markets were mixed.

Investors were also digesting comments from U.S. Federal Reserve Chair Jerome Powell. He indicated, at the end of the Fed’s two-day policy meeting on Wednesday, that a rate cut in December was far from a “foregone conclusion.”

The Fed cut the benchmark federal funds rate by 25 basis points, as expected, to bring it to 3.75%-4%

Stock futures were lower Thursday as investors digested a batch of Big Tech earnings. While Google parent Alphabet shares popped about 9% on the back of strong results, shares of Meta and Microsoft tumbled about 9% and 2%, respectively.

– CNBC’s Sam Meredith and Pia Singh contributed to this report.