European equity markets slipped on Tuesday, with investors cautious ahead of key Eurozone inflation figures and digesting a major leadership shake-up at Nestlé.
Market Overview
By 04:16 ET (08:16 GMT), the Stoxx 600 index was down 0.6%, while Germany’s DAX fell 0.9%. The U.K.’s FTSE 100 slipped 0.4%, and France’s CAC 40 was broadly unchanged.
- Health care and food stocks weighed heavily on the index, with Nestlé leading declines.
- Trading volumes are subdued as attention shifts to fresh macroeconomic data later in the day.
Nestlé in Focus: CEO Ousted
Nestlé’s shares dropped 1.7% in Zurich after the abrupt dismissal of CEO Laurent Freixe.
- The board acted following an internal investigation into a romantic relationship with a subordinate, deemed a violation of company policy.
- Freixe has been replaced immediately by Philipp Navratil, previously head of the Nespresso division.
This marks the second CEO departure in just over a year, after Mark Schneider’s ouster in 2024, raising questions about corporate governance stability at the Swiss group. Investors are concerned that ongoing executive turnover could weigh further on a company already grappling with weak sales volumes and share price stagnation.
Long-standing Chair Paul Bulcke has also confirmed plans to step down in 2026, adding to succession uncertainty.
Inflation Data in the Spotlight
Investors are now focused on the Eurozone CPI release for August:
- Headline inflation is expected at 2.1% year-on-year, marginally above the European Central Bank’s 2% target.
- Core inflation is projected at 2.2%, underscoring persistent underlying price pressures.