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European markets mostly ended lower on Tuesday as investors took some profits after a strong run this year. The mood stayed cautious with more company results coming in and signs that the region’s economy remains weak.
Germany’s DAX index dropped 0.8%, France’s CAC 40 slipped 0.5%, and the UK’s FTSE 100 managed to rise only 0.1%.
Stocks across the world, from the US to Japan, have touched record highs in 2025, and European markets have also enjoyed big gains. The DAX is up over 20% this year, and the FTSE 100 has climbed about 18%. France’s CAC 40, however, has underperformed due to political tensions, gaining just under 10%.
After such strong rallies, investors are now choosing to lock in profits, especially as growth in the eurozone remains sluggish. Data released Monday showed that manufacturing activity across the region stalled in October, with the eurozone’s manufacturing PMI at 50.0, right at the line that separates growth from contraction.
The numbers varied across countries. Greece and Spain showed improvement with PMI readings of 53.5 and 52.1. But Germany and France, the biggest economies in the bloc, stayed in contraction at 49.6 and 48.8.
Adding to investor caution, the European Central Bank recently kept interest rates unchanged for the third straight meeting. Most analysts now expect no rate cuts at the ECB’s next meeting in December either, reducing hopes for fresh monetary support.
In company news, BP reported a third-quarter profit of $2.21 billion, slightly above expectations, and kept its $750 million share buyback in place. Associated British Foods, which owns Primark and brands like Twinings, posted a drop in annual profit and said it may split its retail and food divisions.
Hugo Boss warned that its sales and profits would likely end the year at the lower end of guidance after a weaker third quarter. In contrast, Dutch tech firm Philips raised its full-year profit margin forecast thanks to strong orders and solid sales growth.
Domino’s Pizza reported higher like-for-like sales helped by new menu items and loyalty offers, even as consumers remained cautious. Meanwhile, Norway’s Aker ASA posted strong results, driven by investments in artificial intelligence and real estate.
Oil prices slipped as traders reacted to the weekend’s OPEC+ meeting. Brent crude fell 0.6% to $64.50 a barrel, while US crude dropped 0.6% to $60.59. OPEC+ said it would slightly raise oil production in December but pause further increases in early 2026.
Traders are now watching for fresh US inventory data from the American Petroleum Institute for hints on near-term oil price direction. Overall, it was a quiet but cautious day in Europe, with investors booking profits and keeping an eye on mixed economic signals.