European Stocks Edge Lower as Investors Await Key U.S. Data

European equity markets slipped on Thursday, following Wall Street’s overnight losses, as investors exercised caution ahead of critical U.S. economic reports that could determine the Federal Reserve’s next policy moves.

At 07:10 GMT, Germany’s DAX fell 0.6%, France’s CAC 40 shed 0.7%, while the UK’s FTSE 100 managed to rise 0.5%, supported by energy and mining stocks.

Focus Shifts to U.S. Jobless Claims and GDP

The subdued sentiment came after Fed Chair Jerome Powell reiterated concerns over economic risks and signaled uncertainty on the future trajectory of interest rates. Traders are now focused on the release of weekly jobless claims data, a crucial indicator of labor market health, which remains a key consideration for the Fed as it weighs further rate cuts.

Also due later Thursday is the final reading of second-quarter U.S. GDP, while Friday will bring the personal consumption expenditures (PCE) price index, the Fed’s preferred inflation gauge. These reports are expected to provide clearer signals on whether policymakers will deliver additional easing this year.

Regional Data and Central Banks in Focus

In Europe, attention turns to consumer confidence surveys in France and Germany, alongside the latest policy update from the Swiss National Bank (SNB). The SNB is widely expected to keep its benchmark rate steady at 0%, balancing growth risks against the impact of U.S. tariffs.

Corporate Highlights

• H&M (ST:HMb) reported stronger-than-expected Q3 operating profit, though it warned of margin pressure from U.S. tariffs.
• Birkenstock (NYSE:BIRK) lifted its fiscal 2025 revenue forecast to at least €2.09 billion, also pre-announcing Q4 sales growth of 14% YoY.
• Data from ACEA showed Stellantis (NYSE:STLA) returned to sales growth in Europe, supported by demand for hybrid and electric vehicles.
• BYD, China’s EV giant, outsold Tesla (NASDAQ:TSLA) in the EU for the second straight month, tripling deliveries versus a year ago.