European stocks slide as U.S. government reopens; U.K. growth disappoints
Investing.com - European stocks closed lower on Thursday, despite being boosted earlier in the session by the successful signing of a bill ending the longest U.S. government shutdown on record, while the U.K. economy barely grew in the third quarter.
The DAX index in Germany dropped 1.4% and the CAC 40 in France fell 0.1%, while the FTSE 100 in the U.K. closed down 1.1%.
Sentiment received a boost on Thursday after U.S. President Donald Trump late on Wednesday signed a bill to unlock funding and end the longest-ever government shutdown.
The bill, which will keep the government funded until at least January 30, had earlier been passed in a 222 to 209 House vote, with 216 Republicans and six Democrats voting in favor of the measure.
The U.S. Senate had passed the bill earlier in the week.
The shutdown had sparked widespread disruptions in federal services, most notable in air traffic and travel safety staffing, which in turn saw thousands of flights being cancelled across the country, potentially weighing on economic growth in the world’s largest economy.
Back in Europe, data released earlier Thursday showed that Britain’s economy barely expanded in the third quarter, underlining the backdrop of slow growth as finance minister Rachel Reeves prepares her budget, due for release later this month.
The economy grew 0.1% in the third quarter of 2025, the Office for National Statistics said, slowing from growth of 0.3% in the second quarter.
In September alone, the economy contracted by 0.1%.
“Last week the Bank of England said that, in its view, inflation has peaked. Despite narrowly voting to not cut the base rate immediately, the Bank’s Monetary Policy Committee left the door wide open to a December cut,” said James Bentley, director at Financial Markets Online.
“Today’s GDP numbers give the Bank every reason to walk through that door next month. With inflationary fears dissipating, its priority will be kickstarting the UK’s moribund growth - and a December rate cut now looks all but assured.”
In the European corporate sector, Siemens (ETR:SIEGn) reported record profit and free cash flow for fiscal 2025, marking the German industrial and technology group’s third consecutive year of record net income, as growth in its Digital Industries and Smart Infrastructure divisions offset weaker Mobility orders.
German science and technology company Merck KGaA (ETR:MRCG) tightened its full-year 2025 outlook after reporting a rise in third-quarter earnings, citing strong performance in its healthcare and life science segments that helped counter weakness in electronics.
Deutsche Telekom (ETR:DTEGn) lifted its 2025 guidance to reflect the consolidation of its recent UScellular acquisition, with the German telecommunications giant adding that it plans to increase its dividend as it reported higher revenue for the third quarter.
Aviva (LON:AV) said it expects operating earnings growth per share of 11% over the next three years after the British insurer disclosed upgraded cost synergies from its acquisition of smaller peer Direct Line.
U.K. luxury group Burberry (LON:BRBY) posted a stronger-than-expected rise in second-quarter comparable store sales, signalling early progress in its turnaround strategy and a stabilizing performance in China.
German container shipping firm Hapag Lloyd (ETR:HLAG) posted a 50% drop in nine-month net profit and lowered the top end of its full-year earnings outlook, citing market volatility and rising costs.
Rolls-Royce (LON:RR) reaffirmed its full-year 2025 outlook after the British aero-engine maker reported strong trading through October, supported by continued demand in its Civil Aerospace and Power Systems divisions and steady progress in its Defence business.
Oil prices moved slightly higher on Thursday, looking to recover from the previous session’s losses, after rising U.S. crude inventories reinforced demand concerns in the world’s largest consumer.
Brent futures gained 0.8% to $63.23 a barrel, and U.S. West Texas Intermediate crude futures rose 0.8% to $58.98 a barrel.
Both contracts dropped around 4% on Wednesday after the American Petroleum Institute said U.S. crude stockpiles rose by 1.3 million barrels in the week that ended November 7.
Also weighing was the news that the Organization of the Petroleum Exporting Countries said global oil supplies will slightly exceed demand in 2026.
